NOHSNGITHIANG FALLS IN EAST KHASI HILL DISTRICT,

MEGHALAYA ABODE OF CLOUDS

For updated information, please visit www.ibef.org March 2018 Table of Content

Executive Summary……………….….…..3

Advantage Meghalaya……………………5

Vision 2020 ………………………………..6

Meghalaya – An Introduction….…….……7

State Budget……………………….....……18

Infrastructure Status...... 19

Business Opportunities …….……....……32

Doing Business in Meghalaya…...…...... 49

State Acts and Policies…….………...... 51 EXECUTIVE SUMMARY … (1/2)

Highest GSDP among . Meghalaya’s GSDP stood at US$ 4.59 billion in 2016-17. The state’s GSDP grew at a CAGR of 6.81% between Northeast states 2011-12 and 2016-17.

State with the highest . Meghalaya, with an average annual rainfall of 1,150 cm, receives the highest amount of rainfall in the country. The diverse range of soil types, including red-loamy and laterite, support various agricultural crops like rice, rainfall maize, pulses, oilseeds, cotton, jute and mesta.

. With a vascular plant diversity of 3,331 and more than 300 varieties of orchids, Meghalaya has a strong Strong floriculture sector floriculture sector and is one of the leading states in the Northeast in terms of production and supply of cut flowers to mainland consumer markets.

Strong bamboo . About 14% (3,108 square kms) of Meghalaya is covered by bamboo forests and the state is one of the processing sector leading bamboo producers in the country.

Source: : Directorate of Economics and Statistics of Meghalaya, Central Statistics Office, Government of Meghalaya, Department of Agriculture

3 MEGHALAYA For updated information, please visit www.ibef.org EXECUTIVE SUMMARY … (2/2)

Strong potential of . Of the 6,000 medicinal plants in , 834 plants, including the famous Himalayan Yew, are in Meghalaya. Moreover, the state has 8 of the top 20 medicinal plants that are traded in the country and are in high medicinal plants industry demand.

Large hydroelectric . Meghalaya had an installed hydroelectric power capacity of 387.19 MW as of February 2018. The potential for power potential hydropower in the state is estimated to be around 3,000 MW.

. Meghalaya, with abundant deposits of coal, limestone, kaolin feldspar, quartz, granite, industrial clay and Strong mining sector uranium and a small deposit base of sillimanite, bauxite, base metals and apatite; has great industrial potential.

Tourist destination . Meghalaya, one of the most picturesque states in the country, has 2 national parks and 3 wildlife sanctuaries. It offers many adventure tourism opportunities like mountaineering, rock climbing, hiking and trekking, water sports, etc.

Source: : Central Electricity Authority, Ministry of Tourism

4 MEGHALAYA For updated information, please visit www.ibef.org ADVANTAGE MEGHALAYA

GSDP Conducive agro-climatic conditions Policy and fiscal incentives Per Capita . Meghalaya has favourable agro-climatic conditions that . In addition to the central government’s incentives for GSDP support agriculture, horticulture and forestry; there is investments in the northeast region, the state offers a GSDP at potential for development in related areas. host of industrial incentives. Per capita current . The state has abundant natural resources, which offer . Agro-processing, horticulture, minerals, tourism, GSDP at prices grew significant avenues for investment. electronics and IT have been identified as thrust current at a CAGR sectors for development and promotion. prices grew of 6.81% . In June 2017, the state government passed the GST at a CAGR between bill. The commodities used by the poorest section of of 4.93% 2011-12 and society to be considered at the lowest rate. between 2016-17. 2011-12 and Advantage 2016-17. Meghalaya

Rich labour pool Institutional support . Meghalaya has a literacy rate of 75.48%. . The state provides excellent institutional support through various central and state government . The state has a strong higher education infrastructure. agencies, namely North East Council, Ministry of . Moreover, a majority of the local population speaks and Development of Northeastern region, and Meghalaya understands English. Industrial Development Corporation.

5 MEGHALAYA For updated information, please visit www.ibef.org MEGHALAYA VISION 2030

• Responsive governance. • Speedy clearances. • To provide education, healthcare and • Availability of land, water and power employment opportunities to for rapid industrialisation. vulnerable sections of society. • Undertake measures to attract • Woman empowerment. investments.

Ensuring • To improve formal education opportunities to Empowerment of • To open up rural roads. system. vulnerable people for inclusive • To set up cold storage • To draw up and implement section of growth facilities. population • To promote market facilities plan schemes. Capacity for farmers. • To ensure responsive and development of Promoting market • To bring capacity to market friendly governance. people and friendly policies and institutions Vision institutions undertake organic farming. 2030 Infrastructure Sustainable development based • To improve agricultural • To build an efficient development for on comparative productivity. network of transport. manufacturing and • To ensure balanced use of markets Expanding trade advantage • To ensure state of the art fertilisers. infrastructure. and investments • Adoption and promotion of scientific methods of • To ensure regular and cultivation. quality power supply. • Significant expansion of • To provide access to • To modernise Chittagong port. irrigation. Chittagong port. • To build border trade infrastructure. • To develop diplomatic initiatives.

Source: National Institute of Public Finance and Policy

6 MEGHALAYA For updated information, please visit www.ibef.org MEGHALAYA FACT FILE

. Meghalaya has diverse soil types including red-loamy, laterite, red and yellow soils. These soils have fine textures ranging from loam to silty-loam and alluvial soils. These types of soils support a variety of agricultural crops.

. Shillong, Sohra, Tura Jowai, Nongstoin, Williamnagar, Nongpoh and Baghmara are some of the key cities in the state.

Parameters Meghalaya Source: Abhijitsathe Capital Shillong Geographical Area (sq km) 22,429 . Meghalaya is located in the Northeast of India. The state shares its Administrative Districts (No) 11 border on the north and east with Assam and on the south and west with Bangladesh. Population Density (persons per sq km) 132

. English is the official language of Meghalaya. Khasi, Pnar and Garo Total Population (million) 2.97 are the other principal languages. Male Population (million) 1.49 . Meghalaya is the wettest state in the country with an average annual Female Population (million) 1.48 rainfall of 1,150 cm. It has numerous rivers, the major ones being Sex Ratio (females per 1,000 males) 989 Manda, Damring, Janjiram, Ringge, Ganol, Simsang, Khri, Umtrew, Umiam, Umkhem, Kupli, Kynshi, Umiam Mawphlang and Umngot. Literacy Rate (%) 75.48

Source: Government of Assam, Census 2011

7 MEGHALAYA For updated information, please visit www.ibef.org MEGHALAYA IN FIGURES … (1/2)

Parameter Meghalaya All states Source

Economy 2016-17 2016-17

GSDP as a percentage of all states’ GSDP 0.19 100.0 Central Statistics Office

GSDP growth rate (%) 10.55 11.52 Central Statistics Office

Per capita GSDP (US$) 1,373.5 1,709.39 Central Statistics Office

Physical Infrastructure

Installed power capacity (MW) 558.37 334,146.91 Central Electricity Authority, as of February 2018

Telecom Regulatory Authority of India, as of Wireless subscribers (No) 12,796,167 1,151,936,422 January 2018 Telecom Regulatory Authority of India, as of Internet subscribers (No) 5,190,000 445,960,000 December 2017

National Highway length (km) 1,204 115,435 NHAI and Roads and Building Department

Airports (No) 1 125 Airports Authority of India

1Combined figures for the Northeast states comprising Arunachal Pradesh, Assam, Meghalaya, Manipur, Nagaland, Sikhim, Tripura

8 MEGHALAYA For updated information, please visit www.ibef.org MEGHALAYA IN FIGURES … (2/2)

Parameter Meghalaya All states Source

Social Indicators

Literacy rate (%) 75.48 73.0 Census, 2011

Birth rate (per 1,000 population) 23.7 20.4 SRS Bulletin

Investments

1 Department of Industrial Policy and Promotion, FDI equity inflows (US$ billion) 0.104 368.05 From April 2000 to December 2017

1FDI inflows for RBI’s (Reserve Bank of India’s) Guwahati-region, which includes Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura

9 MEGHALAYA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – GSDP

. At current prices, Meghalaya’s total GSDP stood at US$ 4.59 billion GSDPVisakhapatnam of Meghalaya atport current traffic prices (million (in tonnes) US$ billion) during 2016-17.

. The state’s GSDP grew at a CAGR of 6.81% between 2011-12 and 5 CAGR 6.81% 2016-17.

4.5 4.59

4

4.15

3.5

3.78

3.56

3 3.39 3.09 2.5

2

1.5

1

0.5

0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Source: Directorate of Economics and Statistics of Meghalaya, Central Statistics OfficeGSDP* - Central Statistical Organisation

10 MEGHALAYA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – NSDP

. At current prices, Meghalaya’s total NSDP stood at US$ 4.11 billion NSDPVisakhapatnam of Meghalaya atport current traffic prices (million (in tonnes) US$ billion) during 2016-17.

. The state’s NSDP grew at a CAGR of 6.63% between 2011-12 and 4.5 CAGR 6.63% 2016-17.

4.0

4.11

3.5

3.73

3.0 3.41

3

3.1 3.1

2.5 2.8

2.0

1.5

1.0

0.5

0.0

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Source: : Directorate of Economics and Statistics of Meghalaya, Central Statistics Office NSDP# - calculated using per capita NSDP x Population in million

11 MEGHALAYA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PER CAPITA GSDP

. Meghalaya’s per capita GSDP in 2016-17 stood at US$ 1,373.5 in VisakhapatnamPer capita port trafficNSDP (million(US$) tonnes) comparison with US$ 1029 in 2011-12.

. Per capita GSDP of the state grew at a CAGR of 4.93% between 1600 CAGR 4.93% 2011-12 and 2016-17.

1400

1200 1374

1269

1183

1000

1136

1106 1029 800

600

400

200

0

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Source: Directorate of Economics and Statistics of Assam, Central Statistics Office GSDP* - Assam Budget Estimates 2016-17 Per Capita GSDP^ - calculated using GSDP million US$ / Population in million

12 MEGHALAYA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PER CAPITA NSDP

. Meghalaya’s per capita NSDP in 2016-17 stood at US$ 1,231 in VisakhapatnamPer capita port trafficNSDP (million(US$) tonnes) comparison with US$ 931 in 2011-12. CAGR 4.76% . Per capita NSDP of the state grew at a CAGR of 4.76% between 1400 2011-12 and 2016-17.

1200

1231

1136

1000

1059

994 1011.0 800 931

600

400

200

0

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Source: Directorate of Economics and Statistics of Meghalaya, Central Statistics Office Per Capita NSDP^ - Economic and Statistical Organisation, Punjab (ESOPB)

13 MEGHALAYA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP

. At a CAGR of 9.61%, the tertiary sector was the fastest growing VisakhapatnamPercentage port distribution traffic (million of GSDP tonnes) among the 3 sectors during 2011-12 to 2016-17. Growth has been driven by trade, hotels, real estate, finance, insurance, transport, 100% communications and other services. 44.72% CAGR 51.79% . The secondary sector, the second largest contributor to Meghalaya’s 90% economy, expanded at a CAGR of 2.98% between 2011-12 and 80% 2016-17.

. The primary sector grew at a CAGR of 4.40% between 2011-12 and 70% 2016-17. 60% 9.61%

50% 32.97% 27.95% 40% 2.98% 30%

20% 22.32% 20.27% 10% 4.40%

0% 2011-12 2016-17

Primary Sector Secondary Sector Tertiary Sector

Source: Central Statistical Organization, Aranca Research

14 MEGHALAYA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – AGRICULTURE PRODUCTION

. Citrus fruits, pineapples, bananas, papayas, plums, peaches and Annual production – 2017-18* Crop apricots are the major fruits grown in Meghalaya. Turmeric, ginger, (‘000 MT) black pepper and bay leaves are the major spices cultivated in Fruits 443.02 Meghalaya. The state is also promoting tea cultivation in selected Vegetables 522.55 areas.

. The state has achieved success in the cultivation of non-traditional Flowers (cut) 0.35 crops like tea, cashew nut, oilseeds, tomato, mushroom, wheat, etc. Spices 92.62

. The state government is making use of eco-friendly bio-fertilisers Plantation crops 33.25 and pesticides, bio-control agents, integrated nutrient management Honey 0.20 and green manure for eliminating the deleterious effects of chemical fertilizers and pesticides on soil. Under budget 2016-17, the state Note: * - 1st Advance Estimates government proposed an outlay of US$ 44.69 million for agriculture and horticulture sectors in the state.

. Poultry farming in the state is growing as an increasing number of people have started poultry rearing as backyard farming for domestic as well as commercial purposes. The farmers are trained by the animal husbandry and veterinary department to rear layer, turkey and broiler poultry as well as on hatching programme.

Source: Ministry of Agriculture and Farmers Welfare, State Budget

15 MEGHALAYA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – FDI INFLOWS and INVESTMENTS

. According to the DIPP, cumulative FDI inflows1 to the North eastern FDI equityVisakhapatnam inflows1, 2008 port- traffic09 to 2017 (million-18 (US tonnes)$ million) states during April 2000 to December 2017, stood at US$ 104 million. 45 42 . For attracting more investments and coming up with a strategy to generate skilled and competitive work force, the Government of 40 Meghalaya has decided to establish an Investment Promotion Council in the state, during 2016-17. 35

. The tertiary sector is the fastest growing segment in the state’s 30 GSVA at constant price between 2011-12 and 2015-16. In 2011-12, the contribution of the services sector in state’s GSVA at constant 25 prices was US$ 1.31 billion, which reached US$ 1.6 billion in 2015- 16. 20

15 11 10 10 8 8 5 5 5 2 1 0.6

0

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*

Note: 2017-18* - Up to December 2017 Source: : Department of Industrial Policy and Promotion1Including Assam, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura

16 MEGHALAYA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – EXPORTS TRENDS

. Overall exports from the state increased from US$ 84.20 million in 2010-11 to US$ Export trends (In US$ million) 86.92 million in 2014-15.

. An EPIP has been set up in Byrnihat over an area of 259 acres to promote exports. 87.50 87.00

The unit is located at Byrnihat. 86.50 . Meghalaya shares a 443-km border with Bangladesh and has 10 land custom stations 86.00 85.50 86.92 to aid exports. 85.00 84.50

. The key commodities exported to Bangladesh are coal, limestone, boulder stone, 84.00 agricultural produce and raw hides and skins. 83.50

83.00 84.20 . As per budget 2016-17, the state government is focusing on establishing and 82.50

developing export infrastructure with enhancement and improvement of land custom 2014-15 stations, integrated check posts, etc. along with creating Border Haats across the 2010-11 border of India-Bangladesh.

. In March 2017, the state government proposed opening of 22 border haats, along the India-Bangladesh border. The 2 existing haats at Kalaichar and Balat have not only promoted trade but have also strengthened ties between people of both the countries.

Status of industrial units at EPIP, Byrnihat

Status Of industrial units Number of industrial units Total area occupied (In acres)

Units already established 25 76.92 Under implementation 12 26.71 Yet to be implemented 3 4.19

Source: Ministry of Commerce, News Article EPIP: Export Promotion Industrial Park

17 MEGHALAYA For updated information, please visit www.ibef.org BUDGET 2018-19

Budget Budget Sector Sector (US$ million) (US$ million) Law and order 8.93 Water Resources 29.41

Judiciary 8.50 Soil and Water Conservation 28.28

District Council 2.05 Sericulture and Weaving 5.59

Power 68.99 Forest and Environment 19.30

Roads and Bridges 97.01 Community and Rural Development 225.20

Transport 2.97 Cooperation 2.82

Education 149.77 Border Areas Development 7.31

Sports and Youth Affairs 10.16 Commerce and Industries 3.89

Health and Family Welfare 94.73 Mining and Geology 0.57 Art and Culture 5.30 Urban Development 31.53 Social Welfare 8.31 Housing 1.54 Food, Civil Supplies and Consumer 5.29 Affairs Labour 10.22

Water Supply and Sanitation 45.30 Information Technology 3.04

Agriculture and Horticulture 38.97 Tourism 14.41

Fisheries 9.02 Personnel 0.39

Animal Husbandry and Veterinary 9.24 Information and Public Relations 1.66

18 MEGHALAYA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – ROADS … (1/2)

. Under the budget 2017-18, the government allocated an amount of US$ 93.32 million for a total of 208 number of schemes under a dedicated fund – the Special Plan Fund (SPF) to upgrade State highways, major district roads and construction of critical roads and strategic roads across the State.

. Under the Budget 2018-19, the government allocated an amount of US$ 97.01 million for Roads and Bridges.

. As of 2015-16, around 218 eligible habitations have been linked along with the accomplished road length of 687 km.

Source: Maps of India Road length (km) Road type 2015-16 . The state is well connected to its neighbouring north-eastern states National highways 1,204.36* and other parts of India through 5 National Highways: NH-40, NH-44, NH-51, NH-62 and NH-127B. State highways 1,134

. During 2015-16, at a cost of US$ 5.80 million, 63 km long kutcha Rural roads 1,569 roads, 22 km long new roads and 180 running metres of the RCC bridges were fabricated in the state under the state plan.

. During 2016-17, the Government has sanctioned 45 roads project under the Rural Infrastructure Development Fund (RIDF-XXII) with a cost of US$ 17.07 for construction, improvement and conversion of Semi permanent timber bridges into RCC bridges in different parts of the State

Note: * – Data as of June 2017 Source: Ministry of Road Transport and Highways

19 MEGHALAYA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – ROADS…(2/2)

. Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in 2000 National highway length completed (km) with the objective of connecting eligible rural habitants. During 2016- 17 about 369 km of road network was completed across Meghalaya 350.00 and 3 habitant were benefited. 300.00 292.91 303.18 . During 2017-18 (up to February 2018) 126.982 km of road length 250.00 was completed and 27 habitations were connected in Meghalaya 200.00 under PMGSY. 150.00 100.00 50.00 88.30 50.10 6.40 Pradhan Mantri Gram Sadak Yojana (PMGSY) in Meghalaya 0.00 2012-13 2013-14 2014-15 2015-16 2016-17 (during 2017-18^)

Habitations connected 243 Expenditure on road works under PMGSY in Meghalaya (US$ million) Road length completed (km)# 368.87 25.00 Total expenditure (US$ million)* 15.07 20.00 Source: PMGSY 15.00 22.99 10.00 18.23 15.07 12.72 5.00 5.76 0.00 2013-14 2014-15 2015-16 2016-17 2017-18*

Note: * up to December 2017, ^up to March 2018, #in 2016-2017 Source: NHAI

20 MEGHALAYA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – RAILWAYS AND AIRPORTS

Railways

. The nearest railway station is in Guwahati, Assam. New railway lines on Azra-Byrnihat, Dudhnoi-Mendipathar and Byrnihat-Shillong routes are under construction.

. The foundation stone of Mendipathar railway station was laid in September 2013. The total length of the broad gauge railway route from Dudhnoi (Assam) to Mendipathar (Meghalaya) is 19.75 km.

. In May 2016, new passenger trains were flagged off by Prime Minister Narendra Modi. Moreover, the railway project of Byrnihat-Shillong in Meghalaya is expected to be commissioned by 2019-20.

Airports

. Meghalaya has two airports located in Shillong and Baljek. The Shillong airport (Barapani Airport) is fully operational, while the Baljek Airport is under construction/upgradation. Barapani 2014-15 2015-16 2016-17 2017-18* . In 2015, the state government allocated land to the Airports Airport Authority of India for the expansion of Umroi Airport, Shillong. Total . The Airports Authority of India has taken up a proposal to upgrade passenger 10,346 11,565 13,376 12,061 the Shillong airport to enable large aircrafts to land. traffic

. Helicopter services are available from Guwahati to Tura

. In 2016-17, the domestic passenger traffic at the Barapani was Aircraft 13,376. Passenger traffic during April 2017 – February 2018 movement 432 500 570 440 (nos.) reached 12,061.

. Aircraft movement at Barapani airport during April 2017 – February 2018 stood at 440.

Note: * – Data from April – February 2018 Source: : Airports Authority of India

21 MEGHALAYA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER…(1/3)

. As of February 2018, Meghalaya had a total installed power Installed power capacity in Meghalaya (MW) generation capacity of 558.37 MW, comprising 353.03 MW from state utilities and 205.28 MW from central utilities. Of the total 600.00

installed power generation capacity, 387.19 MW was contributed by

500.00

hydropower, 140.09 MW by thermal power, and 31.09 MW by

400.00

renewable power. 558.37

518.32 510.45

300.00 494.80

455.30 . During 2015-16, 315 KW SPV power plants of different capacities 455.30 200.00

were being installed across government buildings as well as rooftops 373.60

289.60 289.60 100.00 288.10 in the state. Work on manufacturing of 10 KW wind solar hybrid system in the government college at Tura has also been taken up 0.00

during 2015-16.

2015-16 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2016-17

. Under the 12th Five Year Plan, valid from 2012 to 2017, the state 2017-18* government proposed an outlay of US$ 603.02 million, wherein, 11.97% was proposed for power generation, 28.95% for power transmission and distribution and the rest was proposed for survey . As per State Budget 2018-19, the state government is implementing and investigation, re-engineering works, etc. Another US$ 3.98 the North Eastern Region Power System Improvement Project million was proposed for non-conventional sources of energy. (NERPSIP) with funding from Government of India and World Bank . As per State Budget 2018-19, the 2×20 MW New Umtru Hydro aid. The project will help in strengthening and augmenting the Intra- Electric Project (NUHEP) was commissioned in July 2017. There are State Transmission System two hydro projects under implementation - Lakroh SHP (1.5MW) and Ganol HEP (3x7.5 MW).

Note: * – Date as of February 2018 Source: : Central Electricity Authority

22 MEGHALAYA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER…(2/3)

Status of rural electrification in Meghalaya . Rural electrification was taken up as a key initiative under the (As of October 2017) Deendayal Upadhyaya Gram Jyoti Yojana, which was launched in 2015. The operational electrification scheme, that is, Rural Electricity Area type Nos. Infrastructure and Household Electrification, was subsumed in the Total inhabited villages 6,459 scheme launched in 2015. During 2016-17, 681 villages were electrified. Electrified villages 6,384

. As of 31st October 2015, 3 projects were closed in Meghalaya under Un-electrified villages 75 Rural Electricity Infrastructure and Household Electrification, for Total rural households 4,63,022 which US$ 76.17 million was sanctioned and 88% of the sanctioned amount was released. Electrified rural households 3,23,755

Un-electrified rural households 1,39,267 Status of rural electrification in Meghalaya under DDUGJY scheme (As of February 2018)

Area type Nos.

Intensively electrified villages 2,947

Electrified BPL households 105,949

Source: Deendayal Upadhyaya Gram Jyoti Yojana

23 MEGHALAYA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER…(1/3)

. To popularise renewable energy technologies, Meghalaya Non- Central financial assistance/subsidy for renewable power Conventional and Rural Energy Development Agency is projects (US$ million) implementing several projects to utilise energy sources such solar, wind, biogas, biomass. For the overall power sector, the state 3.50 government proposed an outlay of US$ 68.99 million under State Budget 2018-19. 3.00

. As per the budget 2018-19, an allocation of Rs 145.11 crore (US$ 3.06 22.41 million) was made for generation projects, Rs 21.60 crore ( 2.50 US$ 3.34 million) for distribution projects and Rs 50.26 crore (US$ 7.76 million) for transmission projects. 2.00

1.50

1.48

1.39 1.37

1.00 1.31

0.50 0.33

0.00

2016-17 2012-13 2013-14 2014-15 2015-16 2017-18*

Source: Indian Renewable Energy Development Agency Solar Energy Corporation of India

24 MEGHALAYA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – TELECOM

. According to Telecom Regulatory Authority of India (TRAI), North Telecom Infrastructure (as of January 2018) East had about 12.9 million wireless subscribers and 115,229 wire- line subscribers as of September 2017. Wireless subscribers 12,796,167

. In the month of January 2018, 688,994 subscribers had submitted Wire-line subscribers 113,246

request for mobile number portability (MNP) in the northeast. 1 Internet subscribers 5,190,000 Moreover, total tele-density in the northeast region was recorded to 1 be 90.73 % as of January 2018. The total number of post offices in Rural Internet subscribers 2,200,000

the state, as of March 2017, was recorded at 491. 1 Urban Internet subscribers 2,990,000 . The Department of Telecommunications (DoT) initiated a project in

2011, the National Optical Fibre Network (NOFN), with an aim of Source: Telecom Regulatory Authority of India,1Combined figures for the Northeast connecting 250,000 gram panchayats across the country with states comprising Arunachal Pradesh, Meghalaya, Manipur, Nagaland, Sikkim, Tripura, broadband services.

Performance status of NOFN Project (As of December 2017)

No. of GPs in Phase 638

Pipe laid (km)2 1,212

Cable laid (km) 564

GPs for which cable laid 214

Note: 1As of December 2017, 2As of July 2017 Source: Telecom Regulatory Authority of India, ^ - as of June 2017

25 MEGHALAYA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE

. During 2015-16, the state government finished re-development work of parking lots as well as manufacturing of ISBT at Tura, which are expected to be functional very soon. Further, the Government of India has also allocated a new project of manufacturing and developing parking-cum- commercial facility centre at Tura. . Under the 12th Five Year Plan, valid from 2012 to 2017, the state government proposed an outlay of US$ 227.27 million for urban infrastructure development, with the state government focussing on urban planning and development of small towns. Of the total proposed outlay for urbanization, 7.92% was proposed for infrastructure development for Shillong city transport, 29.20% for township development in Shillong, 10.95% for urban development projects in Shillong and the rest for assistance to local bodies, environmental improvement of urban slums, etc. . Under budget 2017-18, the state government proposed an allocation of US$ 41.45 million for urban development in the state with improvisations in physical and social infrastructure in order to improve the standard of living of people in the state. . As per budget 2016-17, the 256 housing units at Nongmynsong, housing project for urban poor as well as Solid Waste Management Project at Tura are estimated to accomplish their operations very soon in the state. Structuring work of 256 housing units at Nongmynsong and 48 housing units at Mawprem was initiated in the state during 2015-16. . In addition to these projects, various projects, such as, enhancement of fire brigade junctions as well as polo market area, etc., have been taken up by the state government during 2015-16 for making the city of Shillong more beautiful. . Under Budget 2018-19, the state government proposed an allocation of Rs 204.12 crore (US$ 31.53 million) for urban development.

Source: Government of Meghalaya. State Budget 2016-17

26 MEGHALAYA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS

. Meghalaya has two government infrastructure projects under the PPP mode as of February 2018:

Investment Contract Authority Sector-Sub Sector Stage (US$ million)

National Highways Authority of India

4-laning of Jorbat-Shillong (Barapani) Transport - Road sec. of NH40 Assam and Meghalaya on 82.79 Under Construction and Bridges DBFOT SARDP-NE Transport - Road Road Upgradation (Shillong) Project 34.54 Completed and Bridges

. As per the budget 2016-17, an amount of US$ 16.41 million has been estimated under the Government of India’s AMRUT (‘Atal Mission for Rejuvenation and Urban Transformation’) Programme for the enhancement of Shillong’s septage as well as sewerage management systems for the period of 2016-20.

. Further, Shillong has been selected under the Smart Cities Mission of Government of India and the proposed amount for this mission is recorded to be US$ 222.97 million which will be used for the development of Shillong.

Source: Department of Economic Affairs, Government of India, PPP - Public Private Partnerships in India

27 MEGHALAYA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – EDUCATION

. Meghalaya has a literacy rate of 75.48%; the male literacy rate is 76.0% and the female Educational infrastructure (2014-15) literacy rate is 72.9%.

. As per the state budget 2016-17, the state government allocated US$ 1.52 million for setting Total universities 13 up engineering colleges in Jowai and Ampati during 2015-16. Central universities 3 . Further, an allocation of US$ 0.13 million has been made by the state government for State universities 1 financing excursion as well as educational tours for government college students during 2015- Private universities 9 16. Colleges 63 . Under budget 2017-18, the state government proposed an allocation of US$ 141.22 million for development of the education sector in the state. Government colleges 6

. In 2016, AYUSH Minister inaugurated the North Eastern Institute of Ayurveda and Medical colleges 1 Homeopathy (NEIAH) to provide healthcare to people in the North East and Sikkim. It has Polytechnics 3 become the 2nd Ayurvedic College in the North East Region with a homeopathy college and Engineering colleges 2 the only Central Academic Institute of Ayush in Guwahati. Secondary schools 783 . The Government of Meghalaya distributes laptops every year to meritorious students of Class Higher secondary schools 112 X and XII., in order to strengthen and enhance IT skills in the state. Primary schools 6,612 . Under Budget 2018-19, the government allocated a higher amount of Rs 969.64 crore (US$ 149.77 million) for the education sector, as compared to the allocation of US$ 141.22 million during the previous year.

. In May 2017, the state government approved 100% salary hike for 7,000 teachers in government aided schools. According to the Press Trust of India, 2,450 lower primary teachers, 2,532 upper primary teachers and 844 Hindi teachers will benefit from this decision.

Source: Department of Education, Government of Meghalaya University Grants Commission, North East Resources Databank

28 MEGHALAYA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – HEALTH

. NEIGRIHMS, which has been instituted to provide medical Health Infrastructure (As of April 08, 2018) education, has a 500 bed super-specialty hospital; expansion works Primary health centres 164 are underway. Sub-centres 787 . As per budget 2016-17, the construction work of Tura Government Community health centres 40 Medical College is expected to start after the successful approval of Detailed Project Report (DPR) by the Ministry of Health and Family District hospitals 23 Welfare. The land for another proposed Government Medical Mobile medical units (MMU)/vehicles3 21 College at Tura has been donated by the people and the same will Ayurveda hospitals3 4 be taken up with the Government of India for funding support. Ayurveda dispensaries3 6 . The state government has initiated the establishment at PPP mode 3 of medical college at the site of Reid Provisional Chest Hospital Homoeopathy hospitals 7 located in Shillong. Homoeopathy dispensaries3 6 . In February 2017, under its Universal Immunisation Programme Source: : Ministry of Health and Family Welfare, Central Bureau of Health Intelligence, (UIP), the government announced the expansion of rotavirus vaccine Government of India in Meghalaya as well as in 4 other states, across India. . To bring affordable and diagnostic healthcare within the reach of the poor in Meghalaya, the government has allocated a sum of US$ 1.52 . Under Budget 2018-19, the government allocated an amount of Rs million. 613.31 crore (US$ 94.73 million) for Health and Family Welfare, as against US$ 65.33 million, during the previous year. . In 2016, the state of Meghalaya witnessed decline in the number of HIV cases reported in the state. Health indicators (as of 2016) . In April 2017, the state government signed an MoU with New India Birth rate1 23.7 Assurance, a public general insurance company, to enhance its phase-3 of Megha Health Insurance Scheme (MHIS-III) for about 1 Death rate 6.6 three million people. MHIS-III includes the coverage of to US$ Infant mortality rate2 39 4164.80 Note: 1Per thousand persons, 2Per thousand live births, 3as of February 2017 Source: : Sample Registration System (SRS) Bulletin September 2014

29 MEGHALAYA For updated information, please visit www.ibef.org CULTURAL INFRASTRUCTURE

. Meghalaya has various tourist attractions such as caves, national parks, sanctuaries, sacred groves, waterfalls, lakes and rivers making it an ideal tourism destination. Meghalaya sports a 18-hole natural golf course, which is a major sport and corporate attraction. . In December 2016, Nongkrem dance festival, the most ancient and grand festivals of the indigenous Khasi tribe, was organised at in Meghalaya. The festival is celebrated as Thanksgiving Day, rituals are performed to appease the all-powerful Goddess, 'Ka Blei Synshar' for a rich bumper harvest and prosperity of the people. . Bara Bazar, Jail Road, G.S. Road, Police Bazar, Glory’s Plaza, Meghaloom, Nagaland Handloom and Handicrafts, Assam Emporium, India Emporium, Khadi Gramodyog, Manipur Emporium, Tantuja and Purbashree are the key shopping areas in Meghalaya. Williamson Sangma State Museum, Don Bosco Centre for Indigenous Cultures, Entomological Museum (Butterfly Museum) are the famous museums of Meghalaya depicting its rich cultural heritage. . In April 2015, the state government laid the foundation of Shillong International Centre for Performing Arts and Culture (SICPAC) and an amount of US$ 25.10 million was proposed for the construction of the centre. As per Budget 2018-19, construction work of this centre will soon be completed. . As per budget 2017-18, the state government initiated the construction of show-cases, galleries, etc. and improvement of golf-course and golf- club premises in Shillong. In addition, the Central Library of the state was also digitised and will be enhanced further with the deployment of new technologies. Various mega events including the Northeast songs and dances, 18 degree festivals, CALM festival, cultural Panorama, etc. also took place in the state during 2015-16. . With a view to accomplish the goal of endorsing sports and encouraging the youth of the state, the state government decided to continue providing financial assistance across the sector. During 2015-2016, the state government also initiated Chief Minister’s Football Tournament, under the Mission Football, in order to make football popular among the youth of the state. . The IHGF (Indian Handicrafts and Gifts Fair), has become the ideal stage for artisans participating from the North East region to show their talent in merchandise made out of cane, bamboo, etc. Meghalaya is one of the key participants in the event. . In March 2017, the 41st Foundation Day of the IGRMS was marked by the inauguration of a 2-day national seminar emphasising on the need of understanding cultural essence of the state and also welcomed a huge number of participants and joined together from Meghalaya and other states too.

Source: : Meghalaya State Portal, State Budget 2015-16

30 MEGHALAYA For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE

. Meghalaya has industrial estates at Shillong, Nongstoin, Mawlyndep, Tura, Williamnagar and Khliehtyrshi; an industrial area at Umiam; an EPIP at Byrnihat; and a growth centre at Mendipathar. . District Industries Centres are functional under the Meghalaya Industrial Development Corporation in each district and are involved in industrial infrastructure development of the district. . The state has constituted a single-window clearance agency for industrial investment approvals. . Techno-Economic Feasibility Reports (TEFRs) are available with the Meghalaya Industrial Development Corporation for poultry, agro-based industry, fruit processing, paper-grade lime, alcohol from tapioca, calcium carbonate extraction, ceramic-glazed tile manufacturing, marble and tile and meat processing. . As per budget 2017-18, under RIDF (Rural Infrastructure Development Fund), a total of 45 projects are under sanctioned with a cost of US$ 17.07 million for construction, improvement and conversion of Semi permanent timber bridges into RCC bridges in different parts of the State. . The Union Finance ministry had allocated a budget of US$135.81 million for the North Eastern Council (NEC) for FY16-17. As per the draft normative allocation, Assam will get 25%, Arunachal Pradesh will be allocated 13%, while the states of Meghalaya, Nagaland, Mizoram, Manipur and Tripura will get equal share of 11%t each and Sikkim will get 7%, from the budget allotted to NEC.

Source: : Meghalaya State Portal

31 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES

. The natural resources, policy incentives and infrastructure in the state favour investments Key Industries in Meghalaya in the tourism, hydroelectric power, manufacturing and mining sectors.

. The agriculture sector contributed around 11.5% to the state’s GSDP in 2014-15 Agriculture and food Hydroelectric processing power . Mineral, horticulture, electronics, IT, export oriented units and tourism have been identified as the thrust sectors for industrial development. The state government is taking various Floriculture Dairy and livestock initiatives for the development of the small scale industries in the state. These include: Horticulture Handloom and . Improving infrastructure. Mining handicrafts . Implementation of schemes like PMEGP and MSE-CDP. Cement Steel processing . Skill development initiatives. Tourism Sericulture . Increasing credit to the MSMEs

. The Commerce and Industries Department of Meghalaya and its constituent unit, Meghalaya Industrial Development Corporation, are jointly responsible for the Proposed development of industrial infrastructure in the state Year IEMs filed investments (in US$ million) . Several MoUs worth USD156.18 million have been signed between the Government and the local entrepreneurs to boost investment in the 2-day Northeast Investors Summit at 2015 2 4.66 Shiilong. The sectors being focussed are textiles, handlooms, handicrafts, sericulture, apparels, garments, technical textiles in all the 8 states, with the “Act East” policy

2016 2 17.69

2017 6 38.15

Note: MSE-CDP - Micro and Small Enterprises – Cluster Development Programme Source: Meghalaya Directorate of Industries, DIPP PMEGP - Prime Minister's Employment Generation Programme,

32 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – FLORICULTURE … (1/2)

. Meghalaya is one of the leading north-eastern states in terms of production and supply of cut flowers to mainland consumer markets. The state’s climate, particularly the areas near Shillong in East Khasi hills district, is well suited for cut flower production.

. The existing industry is at a nascent stage and has the potential to be developed and promoted for export-oriented businesses.

. During 2016-17, the total production of flowers was recorded to be 2.64 thousand tonnes.

. Decorative plants such as dahlia, canna, gladiolus, begonia, tropaeolum, aster, polargonium, antirrhinum, crinum, celosia, kniphofia, impatiens, chrysanthemum, petunias, pansy, calendula, sweet peas and salvia are found in abundance in the state.

Funds for promotion of floriculture in Meghalaya (US$ Thousand)

Year Funds allocated Funds released

2011-12 499.79 493.43 2012-13 381.02 336.27 2013-14 506.60 490.84 2014-15 76.97 76.97

Source: Meghalaya Directorate of Industries

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. The Floriculture Development Scheme in the state is focused on Area under production of cut flowers (in hectares) promoting and raising awareness about the sector.

. This is done by providing incentives to farmers and motivating them 70 CAGR 8%

to grow traditional as well as non-traditional floral crops and 60

houseplants for commercial purposes. 50 60 . The government of India started the “Technology Mission Scheme 40

on Horticulture” to promote and assist commercial floriculture in 30 35 Meghalaya. 20 . During 2016-17, the area under production for cut flowers was 10 recorded to be 60 hectares. During 2017-18* the area under 0

cultivation for cut flowers reached 10 hectares while the production

10 17 2016- reached 350 metric tonnes. 2009-

. The state government is introducing various initiatives in order to educate the farmers about the advantages of growing vegetables in polyhouses.

. New flower crops of heliconia, chrysanthemum, zanthedescia, iris, . The state government has set up a model floriculture centre at the gladioli, and foliage plants of leather leaf fern, Xanadu, goldenrod, district of Ri-Bhoi of the state, during 2015-16, for the development of and Limonium have been introduced and are slowly gaining floriculture sector in the state. acceptance in the farming community.

Source: : * as per 1st advance estimates Source: : Ministry of Agriculture

34 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – MEDICINAL PLANTS

. In 2015, in order to link the farmers with the herbal industry of the National AYUSH Mission (Centrally sponsored scheme) state, the Meghalaya Basin Development Authority had signed a memorandum of understanding with Central Institute of Medicinal Funds allocated (US$ Funds released Year and Aromatic plants (CIMAP). million) (US$ million)

. The important and recognised medicinal plants found and cultivated 2014-15 0.38 0.22 in Meghalaya are Ipecac, Rauvolfia serpentina, Cinchona, 2015-16 0.51 0.15 Abromine, Chaulmoogra Oil, Croton Oil, Eucalyptus, Castor Oil, Chiretta, Solanum khasianum, Casearia vareca, Zanthoxylum 2016-17 1.24 1.245 armatum, Hedyotis scandens, Paederia foetida, Salix alba, 2017-18 1.11 1.14 Anacardium occidentale, Cinnamomum and Taxus baccata.

. 8 out of top 20 highly demanded and traded medicinal plants in India are found in Meghalaya.

35 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – BAMBOO

. Department of Agriculture and Cooperation (DAC), Ministry of Equivalent green weight by soundness of culms in Meghalaya Agriculture is implementing National Agroforestry and Bamboo forests (2014-15) (in ‘000 MT) Mission (NABM) scheme with the objective to utilize the potential of 8,000 7,491 bamboo crops and increase the area of cultivation. In 2014-15, US$ 7,000 6,334 0.51 million was allocated for the implementation of the scheme in 6,000 Meghalaya, of which US$ 0.16 million was released. 5,000 . In 2016-17, a mass awareness programme on ‘Mass Plantation of 4,000 3,000 Bamboo’ was launched all over the State involving village 2,000 1,157 communities, societies, Village Employment Councils and 1,000 individuals. -

. As per the state budget 2017-18, Under Master Craftsman Training, Total 762 artisans were trained in trades like Cane and Bamboo, Wood

Crafts and other artistic works during 2016-17. Under the Scheme Culms Dry

Training Inside and Outside, 899 unemployed youth would be Culms Green trained during the current financial year. Bamboo sector facts

Bamboo production area (hectares) under National 5,574 Bamboo Mission

Bamboo bearing area (Ha.) 4,79,300

Bamboo reserved forest area (Ha.) 9,49,600

Source:Ministry of Agriculture

36 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – AGRICULTURE, HORTICULTURE AND FOOD PROCESSING … (1/2)

. Meghalaya has a climate that supports agricultural and horticultural Area and production of horticulture crops (2017-18*) activities. The state offers potential for investment in these areas.

. Turmeric produced in the state of Meghalaya is considered to be Area Production Year one of the best in the world as it contains 7.5% of curcumin. The (‘000 Ha) (‘000 MT) state is focusing on developing water harvesting and distribution infrastructure to increase the level of mechanisation in the Fruits 35.50 443.02 horticulture sector. Vegetables 49.73 522.55 . During 2017-18, the Government of India allocated Rs 2,550 crore (US$ 396.64 million under the horticulture mission for Northeast and Spices 18.70 92.62 Himalayan states for the development of horticulture sector that Plantation crops 25.52 33.25 including fruits, vegetables, root and tuber crops, mushrooms, spices, flowers, aromatic plants, coconut, cashew, cocoa and bamboo.

. During 2017-18, the state produced 443.02 thousand tonnes of fruits under an area of 35.50 thousand hectares. Similarly, 92.62 thousand tonnes of spices were produced in the state under an area of 18.70 thousand hectares during 2017-18.

. During 2007-2017, 13 projects under National Mission for Food Processing and 12 projects under Technology Up-gradation/ Establishment and Modernization of Food Processing Industries scheme, have been sanctioned by state government.

Note: * - As per 2017-18 (1st Adv. Est.) Source: State Directorates of Horticulture

37 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – AGRICULTURE, HORTICULTURE AND FOOD PROCESSING … (2/2)

. Among various crops and value added products available in the Area expansion for various state, medicinal plants and bamboo processing are the major horticulture crops under HMNEH and MIDH in Meghalaya (Ha.) potential areas of investment. Under the 12th Five Year Plan, US$

84.35 million has been allotted for agriculture and allied sectors. 35000 30681 . Milk production in the state increased from 79 thousand tonnes in 30000 25000 2011-12 to 83.96 thousand tonnes in 2016-17. For the same time 20000 period, the production of meat in the state increased from 37.1 15000 thousand tonnes to 41 thousand tonnes. Egg production in the state 10000 5002 7194 8130 5953 4082 7562 7058 2401 increased from 104.9 million units in 2013-14 to 106.39 million units 5000 0 in 2016-17.

Horticulture crop production in Meghalaya (‘000 tonnes)

1200 1000 800 600 1,117 1,092 979 1,028 1,035 400 824 200 0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*

Note: * - As of 2017-18 (1st Adv. Est.) Source: Mission for Integrated Development of Horticulture (MIDH), HMNEH

38 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – HYDROELECTRIC POWER

. As of February 2018, the state had an installed hydroelectric power Hydro projects in Meghalaya capacity of 387.19 MW, of which the state utilities had an installed capacity of 322 MW and 65.19 MW is contributed by the central Name of the project Installed capacity (MW) sector.

. The state government is inviting investments in this area through the Umangot 260 PPP mode. Independent Power Producers (IPPs) are also being Umduna 57 invited to develop hydro projects in Meghalaya; this provides immense potential for investment. Myntdu Leshka-II 60

. Hydroelectric power projects with a total capacity of 687 MW have Selim 170 been proposed to be set up in Meghalaya. Umangi Storage-I 54 . The 2×20 MW New Umtru Hydro Electric Project (NUHEP) is set to be commissioned within 2017-18 with the first unit expected to go Mawblei 140 for trial run in the last week of March 2017. The other power projects under implementation are the 3×7.5 MW Ganol HEP in West Garo Month wise target of hydro generation for 2017-18 Hills and 1.5 MW Lakroh Small HEP in East Jaintia Hills. Month Installed capacity (MU)

October 2017 107

November 2017 60

December 2017 48

January 2018 40

February 2018 38

Source: Central Electrical Authority Ministry of Power, Government of India March 2018 33

39 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – TOURISM

. Meghalaya is richly endowed with flora, fauna, thick forests, ancient Total tourist arrivals in Meghalaya (‘000) forest groves, large rivers and grass fields – making it an attractive

tourism destination. Number of tourists visiting Meghalaya grew by 900

6.65%, which increased from 692,000 in 2013 to 839,363 in 2016. In 800

2016, Meghalaya witnessed domestic tourist footfalls of 830,887, 700 839

600 759

while the number of foreign visitors reached 8,476. 725

692

686

672

500 657 596 . Caving is a major tourist attraction in the state, as most of the

400 555

deepest and longest caves in South Asia are located in the state. 300 462 404 The Shillong Golf Course is one of the oldest and best natural golf 200 courses in the world and is Asia’s 2nd 18-hole natural golf course. 100 0 . Under Budget 2018-19, the state government sanctioned US$ 14.41 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 million for development of the tourism sector in the state. Further, the state government established 2 recreational parks in Mairang and Marngar during the same period. To enhance skills and build . In November 2016, with an aim to promote motor sports and capacities of the local populace, 15 trainings programmes have been tourism, the state organized the 2nd edition of ‘Bilgaro Challenge conducted during 2016- 17, in which 749 students were trained in 2016’. different hospitality trades like food and beverages services, housekeeping, food and beverages production, basic front office, . In May 2017, a new species of cave-dwelling crabs was discovered grooming and life skills in hospitality. in Meghalaya’s natural caves. It is the first ever species of a cave dwelling crab to be ever discovered in India.

. In May 2017, the Shillong peak, known for its spectacular views, was given the Better Holiday Award.

Source: Ministry of Tourism, Government of India

40 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – INFORMATION TECHNOLOGY

. The IT policy of Meghalaya defines the IT penetration plan for various industries and public sector organisations. . With a high literacy rate, affordable cost, substantial English-speaking population, improved telecommunication connectivity and favourable climate, Meghalaya is well-poised to serve the IT industry. . As per Budget 2018-19, the state government will start construction of a new technology park at New Shillong for companies operating in the IT & ITeS sector. . Under Budget 2018-19, the state government allocated US$ 3.04 million for the development of the IT sector. During 2015-16, the state government came up with citizen centric services for citizens residing in the far flung areas. Across the district of East Khasi Hills, 5 e-district services are already operating. These services were rolled out across other districts during 2016-17. . With the fast development of Software Technology Park of India at Lumjingshai, Shillong, various IT companies are expected to set up their offices in the coming years. . Under the Chief Minister’s Digital Students Aid Programme, the Meghalaya government has decided to continue the distribution of laptops as a reward to meritorious students along with digital content enabled tablets to higher secondary students of the state.

Source: : : Ministry of Tourism, Government of India IT - Information Technology, STPI - Software Technology Parks of India

41 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – SERICULTURE

. Mulberry, muga and eri cocoons are cultivated in Meghalaya. Raw Silk production Year . Sericulture has predominantly remained a cottage industry and the state government is (MT) taking proactive steps in training people, reaching out to the market and providing technical support. 2012-13 517

. Major initiatives taken by the state government for the sector’s development are improving 2013-14 644 infrastructure. 2014-15 656

. Creation of nursery for production of quality planting material and seeds as well as 2015-16 857 area expansion under mulberry plantation. 2016-17 P 927 . Technology interventions to improve production and productivity of plantations and Source: Central Silk Board 1Provisional upgrading existing production units. Funds allocated and released for promotion of . Capacity building, including exposure visits. sericulture in Meghalaya (US$ million) . Entrepreneurship development and value chain development in the sericulture sector.

. Organic farming is playing a major role in sustaining the health and fertility of soil. During Year Sanctioned 2016-17, raw silk production in the state was recorded to be 927MT.

. Under Budget 2018-19, the state government proposed an outlay of US$ 5.59 million for 2011-12 1.37 sericulture and weaving sectors in Meghalaya. 2012-13 1.23

2013-14 1.77

2014-15 0.94

2015-16 1.08

P - Provisional Source: Ministry of Textiles

42 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – HANDLOOM AND HANDICRAFTS

. Meghalaya has an established tradition of high-quality weaving. Around 15,900 families are involved in handloom activities in the Meghalaya khadi production value state. There are eight handloom production centres, 24 handloom (in US$ thousand) demonstration-cum-production centres, 24 weaving training centres 18.00 and a state-level handloom training institute (Mendipathar, East Garo 16.00 14.00

Hills) in the state. 12.00

10.00

. As per budget 2016-17, in the Garo and Khasi Hills of the state, 75

8.00

handloom clusters were organized during 2015-16. 15.53

6.00 15.08

14.22

12.81

4.00 9.47

. Under the North Eastern Region Textile Promotion Schemes 2.00 8.69 4.95 (NERTPS) for both sericulture and handloom sectors, funds to 0.00 4.26 benefit 1,000 sericulture farmers under the Intensive Bivoltine

Sericulture Development Project (IBSDP) and 2,300 sericulture

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 farmers for Integrated Sericulture Development Project (ISDP), 2008-09 including 72 handloom clusters, have already been approved. Meghalaya khadi sales value . Under the Comprehensive Handloom Development Scheme, the (in US$ thousand) central government is helping the handloom manufacturers in setting 25.00 up of a yarn depot for the production of the handloom products and product development and diversification centres. 20.00

. As of April 2017, Khadi and Village Industries Commission (KVIC) 15.00 plans to set up 7-8 khadi centres in Meghalaya in this year. Each 20.82 10.00 18.41 18.25 centre is estimated to cost around US$ 13,368.66, and the annual 16.59 production is expected to be around US$ 24,000. 5.00 0.00 1 2012-13 2013-14 2014-15 2015-16

Source: Ministry of Micro, Small and Medium Enterprises

43 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – MINERALS AND MINING … (1/3)

. Meghalaya accounted for 4.272 million tonnes of limestone . The prominent coalfields of the state are West Darrangiri, Siju, production for the period April 2017 to December 2017. Pendengru-Balpakram in the South Garo Hills district; Borsora Langrin and Shallang in the West Khasi Hills district; East Darrangiri . An extensive bed of limestone occurs in the southern part of the partly in West Khasi Hills and partly in East Garo Hills; Mawlong- state from Jaintia Hills in the East and Garo Hills in the West. Large Shella and Sohra-Cherrapunjee in the East Khasi Hills district and deposits of good quality Lithomargic clay have been found in Garo Bapung-Sutnga in the Jaintia Hills district. Under the budget 2017- Hills. The mining industry is emerging in Meghalaya; most of the coal 18, the state government proposed an allocation of Rs 3.69 crore and stones are being exported to Bangladesh. A number of cement (US$ 573,961) for mining and geology. factories are being either planned or set up, owing to the rich mineral content of the state.

. In August 2015, the state government passed a resolution seeking the President’s approval on exempting Meghalaya from the Mines and Mineral (Development and Regulation) Act, 1957. As per budget 2017-18, the matters are under active consideration of the Meghalaya limestone production (‘000 MT) Government of India.

. Under State Budget 2018-19, US$ 0.57 million are allocated for the 6,000 development of mining and geology sector in the state. 5,000

4,000

3,000

5,103 4,825

2,000

4,543

4,364

4,345

4,272

3,834 1,000 - 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*

Source: : Department Of Mining and Geology, Government of Meghalaya

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. In 2016-17, coal reserves in the state stood at around 576 million Coal reserves in Meghalaya tonnes with 0.18% share of the total coal reserves of India.

. In 2014-15, geochemical mapping was conducted in 2 districts of Year Reserve (million tonnes) Meghalaya, namely, Ri- Bhoi and Jaintia Hills. 2009-10 507.7 . In 2014-15, the Ministry of Mines conducted an assessment of limestone reserves of Mawlong-Ishamati Block of Shella-Bholaganj 2010-11 525.9 belt, East Khasi Hills District. 2011-12 543.1 . In 2014-15, the Ministry of Mines investigated the presence of lateritic bauxite around Rambrai area of West Khasi Hills District. 2012-13 557.6

. In September 2015, the state government submitted mining 2013-14 567.9 guidelines and mining policy to the National Green Tribunal. The 2014-15 576.4 policy is the same as Meghalaya Mines and Mineral Policy 2012 with additional guidelines under NGT directives 2015-16 576.0 2016-17 576.0

Source: Coal Controllers Office, Ministry of Mines, Government of India

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Mineral Location

Cherrapunjee, Mawlong, Ishamati,Shella, Komorrah, Borsora, Bagli in Khasi Hills District, Lakadong, Lumshonong, Limestone Nongkhlieh in Jaintia Hills District, Darrang Era-Aning, Siju and Chokpot in Garo Hills District Langrin and East Darrangiri in Khasi Hills District, Bapung in Jaintia Hills District and West Darranggiri in Garo Hills Coal District Cherrapunjee and Mahadek in Khasi Hills District, Tongseng in Jaintia Hills District, Nangwalbibra and Rongrenggiri in Clay (Lithomargic) Garo Hills District Granite Nongpoh in Ri-Bhoi, Mylliem and Mawkyrwat in Khasi Hills District, Rongjeng in East Garo Hills District Mawphlang, Smit, Laitlyngkot in Khasi Hills District, Thadlaskein, Mulieh Shangpung, Mynsngat in Jaintia Hills District Kaolin and Darugiri in Garo Hills District Iron Ore West Khasi Hills and East Garo Hills District

Glass Sand Laitryngew, Umstew and Kreit in Khasi hills, Tura in Garo Hills District

Feldspar Bonsamgiri and Rombhagiri in East Garo Hills District

Silimanite Sonapahar in West Khasi Hills District

Bauxite Sung valley in Jaintia Hills District

Rock Phosphate Sung valley in Jaintia Hills District

Source: : Department Of Mining and Geology, Government of Meghalaya

46 MEGHALAYA For updated information, please visit www.ibef.org SINGLE-WINDOW CLEARANCE MECHANISM

. With a view to facilitate and expedite various clearances and government approvals required by entrepreneurs as well as to promote investments in the state, the Government of Meghalaya has formed a committee to act as a single-window agency for all investments in the state. . Some of the terms of reference for the committee include: . To facilitate the expeditious issue of all clearance/approvals required from various departments and agencies of the state government to any entrepreneur applying for the same and to assist in obtaining clearance from other state bodies/organisations. . To assist entrepreneurs in obtaining various clearances and approvals from the central government and its agencies. . To take up with finacial institutions/commercial banks, wherever required, for expediting sanction and disbursement of loans/working capital to prospective entrepreneurs. . To facilitate and expedite on land matters for setting up industries. . To facilitate local entrepreneurs in having an interface with industrial association, central government, boards, and authorities, among others. . To attend to all enquiries from all prospective entrepreneurs relating to the law, procedures, practices etc governing investments in the state. . To continuously review the various clearance and approvals required for investment in the state by entrepreneurs, with a view to simplify them as also to minimise procedural constraints to ensure flow of investments in the state.

Source: Single Window Agency

47 MEGHALAYA For updated information, please visit www.ibef.org KEY APPROVALS REQUIRED

Approvals and clearances required Department

Incorporation of Company Registrar of Companies

Registration, Industrial Entrepreneurs Memorandum, Industrial Licenses

Permission for Land Use Industries Department of Meghalaya

Allotment of Land

Site Environmental Approval Meghalaya Pollution Control Board No-objection Certificate and Consent Under Water and Pollution Control Act

Registration Under States Sales Tax Act and Central and State Excise Act Excise Department Commercial Taxes

Sanction of Power

Power Feasibility Meghalaya Energy Corporation Limited

Power Connection Public Works Department Approval for Construction Activity and Building Plan

Water and Sewerage Clearance Public Health and Engineering Department Water Connection

48 MEGHALAYA For updated information, please visit www.ibef.org COST OF DOING BUSINESS IN MEGHALAYA

Cost parameter Cost estimate Source

Cost of land (per acre) US$ 75,000 to US$ 180,000 (Shillong) Industry sources

Hotel cost (per room per night) US$ 25 to US$ 48 State Tourism website

Office space rent (2,000 sq ft) US$ 300 to US$ 800 per month Industry sources

Residential space rent US$ 75 to US$ 300 per month Industry sources (2,000 sq ft house)

Domestic: US 74.65 cents Fixed power cost (per kWh per Commercial: Average US 149.3 cents Central Electricity Authority month) Industrial: Average US 149.3 cents

Labour cost (minimum wages Ministry of Labour and Employment, Government of India, US$ 1.65 to 2.32 per day) Wage rates for September 2013

49 MEGHALAYA For updated information, please visit www.ibef.org KEY INDUSTRIES – MINERALS AND MINING … (3/3)

Agency Contact Information

258, 1st Floor, Vigyan Bhavan-Annexe New Delhi-110011 Ministry of Development of North Eastern Region Phone: 91-11-2302 2401, 2302 2400 Fax: 91-11-2306 2754 Website: www.mdoner.gov.in Director of Commerce and Industries, Administrative Building, Lower Lachumiere Shillong-793 001 Commerce and Industries Department East-Khasi Hills District, Meghalaya E-mail: [email protected] Website: http://megindustry.gov.in Meghalaya Energy Corporation Limited Lum Jingshai, Short Round Road Shillong-793001 Meghalaya, India Meghalaya Energy Corporation Limited Phone: 91-364 2590610/ 2590742/ 2590710/ 2591843 Fax: 91-364-2590355 E-mail: [email protected] Website: www.meseb.nic.in

Source: : Department Of Mining and Geology, Government of Meghalaya

50 MEGHALAYA For updated information, please visit www.ibef.org STATE ACTS and POLICIES … (1/2)

Objectives

The Meghalaya Appropriation (No. I) Act, . To authorize appropriation and payment from the consolidated fund of the state 2014 Read more

Renewable Energy Policy . To supplement the existing power production and generate employment opportunities. 2013 (Proposed) . To identify areas in Meghalaya that have potential in biomass power for setting up off-grid plants. Read more

Meghalaya Industrial . To facilitate investments in new sectors across the state and thus ensure accelerated and sustained growth. and Investment Promotion Policy 2016 . To attract, facilitate and promote wider expectations and high end investment. Read more

. To provide for water rights and obligations; conservation, control, management and use of water resources and Water Act 2012 supply; constitution of water and sewerage authorities; facilitate devolution and decentralisation of management.

Read more

Meghalaya Mines and . To facilitate systematic, scientific and planned utilisation of mineral resources and to streamline mineral-based Minerals Policy 2012 development of the state. Read more

. The mission for youth development in the state is to create an enabling environment for youth to realise their rights, State Youth Policy 2012 potentials and opportunities in the state and making them self-reliant, empowered and active citizens. Read more

51 MEGHALAYA For updated information, please visit www.ibef.org STATE ACTS and POLICIES … (2/2)

Objectives

Meghalaya Tourism . To position Meghalaya as a preferred tourist destination by taking advantage of its rich cultural heritage and natural Policy 2011 beauty. Read more

North East Industrial and . To promote the Northeast region as an attractive investment destination through various concessions and Investment Promotion incentives. Policy (NEIIPP) 2007 Read more

. To create wealth, generate employment and bring in IT-led economic growth. IT Policy 2004 . To make information technology as a tool for attaining all round development in the state. Read more

. To create wealth, generate employment and bring in IT-led economic growth. Industrial Policy 1997 . To make information technology as a tool for attaining all round development in the state. Read more

Meghalaya Road . To facilitate better approach to monitoring of the road infrastructure in the state Maintenance Policy 2017 . To create road infrastructure in the state with special focus on facilitating access to remote villages Read more

52 MEGHALAYA For updated information, please visit www.ibef.org EXCHANGE RATES

Exchange Rates (Fiscal Year)

Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 46.88

2012-13 54.31

2013-14 60.28

2014-15 60.28

2015-16 65.46

2016-17 67.09

Q1 2017-18 64.46

Q2 2017-18 64.29

Q3 2017-18 64.74

Source: Reserve Bank of India

53 MEGHALAYA For updated information, please visit www.ibef.org DISCLAIMER

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54 MEGHALAYA For updated information, please visit www.ibef.org