       • ‟s pent-up demand for electricity could be addressed by the state‟s potential 60,000 Largest hydropower MW hydropower capacity. Currently, several hydro power projects are allocated to private potential in India sector players with capacity aggregating 35,031.5 MW.

Railways as a new • The 21 km Harmuti () to route became operational in April 2014; this has connected the state to the rest of India and provided huge trade and transport means of transport opportunities.

• is home to 601 species of orchids, or 52 per cent of the species of Orchid paradise orchids known in India, indicating a huge potential for attracting tourists, especially foreign ones.

• The state‟s textile industry, including carpet making, enjoys a huge appeal. The state‟s Carpet making carpets have received national and international fame for their creativity, design and quality.

• Arunachal Pradesh, with an area of 83,743 sq km, is the largest state in the Northeast of Largest state in India. Its diverse topography offers opportunities for non-timber based industries such as Northeast bamboo, cane and medicinal plants.

Source: The India Environment Portal, Economic Times, Arunachal Pradesh Government website, Aranca research 2013-14 HighGrowing economic demand growth Huge hydropower potential Pipeline • The GSDP increased at a compound • The hilly terrain and abundant rivers 100+ annual growth rate (CAGR) of 16.1 per make the state a potential Hydropower cent* between 2004-05 and 2013-14, powerhouse of the Northeast. projects faster than India‟s 15.0 per cent* generation • The state‟s hydropower potential is having a growth. capacity: currently estimated at 60,000 MW, or generation 97.57MW • The state has considerable mineral approximately 25 per cent of India‟s capacity of reserves that offer huge potential. current power generating capacity. 47,000 MW • Due to its topography, the state has varied agro-climatic conditions suitable for horticulture of flowers and Advantage aromatic and medicinal plants. Arunachal Pradesh Policy and fiscal incentives International trade

• The state and central governments opportunities offer huge fiscal and policy incentives for the development of important • The state‟s location provides sectors. opportunities for international trade with South Asian countries such as • The State Industrial Policy, 2008, and Myanmar, and China. Agriculture Policy 2001 support these activities. Additionally, the central • Textiles and handicrafts from the state government‟s North East Industrial are in demand in neighbouring and Investment Promotion Policy countries. (NEIIPP), 2007, promotes investment. • Recently, the state received approval for the first border „haat‟ along the Indo- Myanmar border.

*Calculated in Indian Rupee terms , Naharlagun, , Rupa, , , , and are some of the major towns in the state.

Brahmaputra is the major river flowing through the state. Other smaller rivers include Kameng, Subansiri, Lohit, Tirap and Siang.

Arunachal Parameters Pradesh Capital Itanagar Geographical area (sq km) 83,743 Source: Maps of India Administrative districts (No) 16

Located in the Northeast of India, Arunachal Pradesh is the Population density (persons per sq km) 17 largest of the seven sister states. It shares borders with the Total population (million) 1.4 neighbouring countries of Bhutan in the west, China () in the north and northeast and Myanmar in the east and Male population (million) 0.71 southeast. The Indian states of Assam and Nagaland Female population (million) 0.67 border it in the south. Sex ratio (females per 1,000 males) 938 The most commonly spoken languages are Assamese, Bengali and Hindi. English is the official language and Literacy rate (per cent) 65.38 primary medium of education in schools. Source: Government of Arunachal Pradesh website, (http://arunachalpradesh.nic.in), Ministry of Development of North Eastern Region, Census 2011 Arunachal Parameter All States Source Pradesh Economy

Planning Commission Databook, June 2014, GSDP as a percentage of all states‟ GSDP 0.1 100.0 current prices, 2013-14 Planning Commission Data Book, June 2014, Average GSDP growth rate (%)* 16.1 15.5 current prices, from 2004-05 to 2013-14 Planning Commission Databook, June 2014, Per capita GSDP (US$) 1,541.1 1,414.40 current prices, 2013-14 Physical Infrastructure

Installed power capacity (MW) 249.4 249,488.3 Central Electricity Authority, as of June 2014 Telecom Regulatory Authority of India, as of Wireless subscribers (No) 9,541,874^ 910,157,975 June 2014 Ministry of Communications & Information Broadband subscribers (No) 7,781 65,330,000 Technology, as of May 2014 National Highways Authority of India and National Highway length (km) 2,302 79,116 Telecom Regulatory Authority of India, as of March 2013

Airports (No) 5^^ 133 Airports Authority of India

*Calculated in Indian Rupee terms, ^Combined figures for the Northeast states comprising Arunachal Pradesh, , , , Nagaland and Tripura, ^^Non operational Arunachal Parameter All States Source Pradesh Social Indicators

Literacy rate (%) 65.4 73.0 Census 2011

SRS Bulletin (www.censusindia.gov.in), Birth rate (per 1,000 population) 19.4 21.6 September 2013 Investment

Outstanding investments (US$ billion) 52.8 2,414.2 CMIE (2013-14)

SRS: Sample Registration System At current prices, the Gross State Domestic Product GSDP of Arunachal Pradesh at current prices (GSDP) of Arunachal Pradesh was US$ 2.2 billion in 2013- (in US$ million) 14. 2,265 2,226 CAGR 2,220 1,976 Arunachal Pradesh‟s GSDP increased at a CAGR of 16.1 16.1%* per cent* from 2004-05 to 2013-14. This was faster than 1,576 India‟s total GDP growth of 15.0 per cent*. 1,194 1,233 851 910

778

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Source: Planning Commission Databook, June 2014 *Calculated on INR figures At current prices, the Net State Domestic Product (NSDP) of NSDP of Arunachal Pradesh at current Arunachal Pradesh was US$ 2.1 billion in 2013-14. prices (in US$ million)

Arunachal Pradesh‟s NSDP at current prices expanded at a 2,099 2,066 2,059 CAGR of 16.3 per cent* between 2004-05 and 2013-14. CAGR This was faster than India‟s total NDP growth of 15.0 per 16.3%* 1,830 cent*. 1,442 1,127 1,094

711 779 834

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Source: Planning Commission Databook, June 2014 *Calculated in Indian Rupee terms, CAGR - Compound Annual Growth Rate In 2013-14, the state‟s per capita GSDP at current prices Per capita GSDP (in US$) was US$ 1,511.1 compared to US$ 649.7 in 2004-05. CAGR 1,615 1,551 The per capita GSDP increased at a CAGR of 13.5 per 13.5%* 1,441 1,511 cent* between 2004-05 and 2013-14. 1,177

934 942 728

650 697

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Source: Planning Commission Databook, June 2014 *Calculated in Indian Rupee terms, Note: CAGR - Compound Annual Growth Rate The state‟s per capita NSDP in 2013-14 was US$ 1,401.5 Per capita NSDP (in US$) compared to US$ 593.8 in 2004-05.

1,497 1,439 The per capita NSDP increased at an average rate of 13.7 CAGR 1,402 13.7%* per cent* between 2004-05 and 2013-14. 1,335 1,077 856 861 668

594 638

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Source: Planning Commission Databook, June 2014 *Calculated in Indian Rupee terms, Note: CAGR - Compound Annual Growth Rate The primary and tertiary sectors continue to dominate the GSDP composition by sector composition of GSDP of the Northeastern state. In 2013-14, the primary sector contributed 43.1 per cent to the state‟s CAGR* GSDP at current prices, followed by the tertiary sector (30.9 33.0% 30.9% per cent) and the secondary sector (26.0 per cent). 15.3%*

At a CAGR of 18.0 per cent*, the primary sector has been 26.0% 29.5% the fastest growing sector among the three sectors from 2004-05 to 2013-14. Growth was driven by agriculture, 14.4%* forestry and logging. 43.1% 37.4% 18.0%* The tertiary sector expanded at a CAGR of 15.3 per cent* between 2004-05 and 2013-14. Growth has been driven by 2004-05 2013-14 trade, hotels, real estate, banking, insurance, transport, Primary Sector Secondary Sector Tertiary Sector communications and other services.

The secondary sector increased at a CAGR of 14.4 per Source: CMIE *Calculated in Indian Rupee terms, cent* between 2004-05 and 2013-14. CAGR - Compound Annual Growth Rate Cereals, oil seeds, ginger, potato, sugarcane and pineapple Annual production – 2012-13 are some of the key agricultural products of the state. Crop („000 metric tonnes) In 2011-12, total food grain production in the state increased Flowers 297.0 8.6 per cent to 362,000 metric tonnes from 334,000 metric tonnes in 2010-11. Paddy (rice) 255.0* Citrus 176.7 The state received a commendation award for food grain production in category–III during 2011-12. Cereals 91.0* Pineapple 67.6 Total paddy (rice) production in the state was nearly Ginger 255,000 metric tonnes and total cereals production in the 57.0 state was ~91,000 metric tonnes in 2011-12. Vegetables 37.6

Apple 31.0 Major cereal crops of the state are rice, wheat, maize and millet. Banana 18.2 Tomato 14.9 Cabbage 11.6 Cauliflower 8.0

Source: NEDFI Databank, Ministry of Agriculture, Indian Horticulture Database 2012-13, National Horticulture Board, Final Estimates 2011-12, Krishi Karman Awards Booklet 2012-13, *2011-12 According to the Department of Industrial Policy & Break up of outstanding investments by sectors Promotion (DIPP), cumulative FDI inflows from April 2000 to (2013–14) (US$ million) February 2014 amounted to US$ 79 million*. 150 In 2013-14, outstanding investments in the state were US$ 3,122 52.8 billion. Electricity Of the total outstanding investments in 2013-14, the electricity sector accounted for around 93.8 per cent, followed by the services sector (5.9 per cent). Services

Manufacturing *FDI inflows for RBI‟s (Reserve Bank of India‟s) -region, which includes Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. 49,510

Source: CMIE state with rest of India.

Under Arunachal Pradesh Package for Roads & Highways, in 2009, the central government approved projects for improving 1,472 km of national highways and 847 km of state roads. This is under the Prime Minister‟s package. In October 2013, the central government cleared the 157 km Miao-Vijaynagar project at a cost of US$ 27 million to be completed in four years.

As per the Special Accelerated Road Development Programme for North Eastern region (SARDP-NE), in order to boost growth momentum, 10,141 km of roads are to be Source: Maps of India redeveloped to improve connectivity of the district headquarters and the remote places of the Northeast region Arunachal Pradesh has about 12,169 km of major district with state capitals. roads. Of the total 10,141 km of roads, the Union Road Transport The state had a road density of 25.74 km per 100 sq km, as and Highways Ministry recently approved 6,418 km. The of March 2011, while the national average was 115 km per remaining 3,723 km have been approved for preparation of 100 sq km. Chief Minister has announced that a detailed project report that is scheduled to be completed all districts, including the far flung areas, would be inter- by 2017. connected by mid -2017 through good quality roads. The SARDP-NE envisages providing road connectivity to all As of September 2013, about 2,302 km of national district headquarters in the Northeast region with minimum highways run through Arunachal Pradesh, connecting the two-lane highway standards. Under the SARDP-NE, the strategic 2,400 km Trans- Arunachal Highway Project (National Highway 229), which Road infrastructure Road length (km) would link Tawang to Mahadevpur, has been announced. The project is expected to be completed by 2017. National Highways (km) 2,302

Major district roads 12,169 In January 2014, four more road upgradation projects – the -, Joram-Koloriang, Akajan--Bame and Rural roads 5,455 Khupa-Hawai sections – were announced at an estimated cost of US$ 734.9 million. Total 21,555

The rural development ministry has approved the construction of 95 roads and 31 long-span bridges in the Source: Telecom Regulatory Authority of India, The Hindu, state, covering a length of 1,190 km at a cost of US$ 150 Arunachal Pradesh State Action Plan on Climate Change, million. Projects Monitor, Government of Arunachal Pradesh, Times of India, Ministry of Road Transport & Highways

An amount of US$ 25.2 million has been kept aside to construct cement concrete roads with proper drainage across 10 districts.

Construction of a bypass road from Naharlagun to Itanagar via Jully has been approved to reduce traffic congestion between Naharlagun to Itanagar. In the 1980s, air services were provided by Vayudoot, a JV of Indian Airlines and Air India, which ceased operations in 1997. In December 1995, the state government introduced passenger flight services with a fleet of two helicopters: a nine-seater Dauphin helicopter and a 24- seater MI-172 type helicopter.

Initially operating on the Naharlagun (close to Itanagar) to Guwahati and Mohanbari (both in Assam) route, the service currently also connects major local towns, including Tawang, Ziro, , Daporijo, Along, , , , , , Namsai and Anini.

A proposed greenfield airport near the capital, Itanagar, received environmental clearance in April 2010. The Ministry of Civil Aviation has also planned to operate Domestic airport^ airports at Tezu, Pasighat, Along, Daporijo and Ziro. Inter-state helicopter service*

The state‟s capital, Itanagar, was put on the country's railway map in April 2014. The state government plans to extend the existing railway connectivity and connect the Source: Airports Authority of India; Department of Civil Aviation, Upper Assam areas with Arunachal Pradesh. Government of Arunachal Pradesh. North East Frontier Railway (NEFR) ^Non-operational *Major route As of June 2014, Arunachal Pradesh had a total installed Installed power capacity (MW) power generation capacity of 249.43 MW. It consisted of 129.62 MW under central utilities, 119.78 MW under state utilities and 0.03 MW under the private sector. 249.4 249.4

213.3 213.7 Hydropower is the major source of electricity generation in 201.9 the state, contributing around 97.57 MW to installed 180.1 capacity, followed by 103.93 MW of renewable energy resources and 47.93 MW of thermal power.

Recently, the Cabinet Committee on Investment gave clearance to two hydro power projects: Tawang Hydroelectric Project and Tawang Hydroelectric Project.

Moreover, the government has allocated 102 hydro electric 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 projects, each exceeding 25 MW, to private players aggregating 35,031.5 MW. Source: Central Electricity Authority Department of Hydro Power Development, Arunachal Pradesh Some of these projects, previously allocated to the public The India Environment Portal, New India Express sector, were reallocated to the private sector. As of May 2014, overall tele-density in north eastern states stood at 70.77 per cent^. Telecom infrastructure (May 2014)

Wireless subscribers^ 9,541,874 The government has asked Bharat Sanchar Nigam Limited (BSNL) to beef up telecom connectivity in the far flung Wire-line subscribers^ 136,892 corners of Arunachal Pradesh on priority basis. Tele-density^ 70.77 In line with the same, the Telecom Regulatory Authority of Post Offices 295** India plans to invest nearly US$ 484 million to revamp telecom networks across the north eastern states, of which US$ 91 million will be invested in Arunachal Pradesh. Source: Telecom Regulatory Authority of India, India Post, ^Combined figures for the Northeast states comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura for BSNL is expected to use digital satellite phone terminals in May 2014, **As of April 2014 these regions from October and was expected to complete installations by March 2014. Some of the major telecom operators in Arunachal Pradesh A total of 321 and 6,673 towers will be installed to provide coverage to the highways and villages in the region, Bharat Sanchar Nigam Limited (BSNL) respectively. Bharti Airtel Aircel Limited Out of the total of 321 towers, nearly 149 would be installed Vodafone to provide highway coverage and 2,886 villages will be Reliance Communications brought under the mobile loop in Arunachal Pradesh. Idea Cellular

As of June 2014, the state had 295 post offices. Source: Economic Times, The Hindu Businessline, Telecom Regulatory Authority of India Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), three projects costing US$ 29.9 million have been sanctioned for Itanagar.

Development projects related to water supply, solid waste management and urban transport have been identified under the JNNURM.

Of these, the municipal solid waste management project has been completed at a cost of US$ 1.8 million in September 2013 and the water supply project was completed at a total cost of US$ 11.7 million.

The third project related to the improvement and creation of infrastructure for urban transport was 74 per cent complete as of March 2014, utilising 68 per cent of the allotted budget of US$ 15.1 million.

The urban transport project was approved in 2009, while two other projects on water supply and solid-waste management were approved in 2007. As of March 2014, US$ 20.8 million of funds were released for the projects.

Under the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), US$ 16.82 million has been sanctioned for development of roads, solid-waste management and storm drainage systems.

Source: JNNURM, Ministry of Urban Development, As per the 2011 census, Arunachal Pradesh has a literacy rate of 65.4 per cent; the male literacy rate stood at 72.6 per Literacy rates (%) cent and the female literacy rate at 57.7 per cent. Literacy rate 65.4

Under the Sarva Shiksha Abhiyan (SSA), the government Male literacy 72.6 released US$ 4.8 million as salary for teachers in the SSA 57.7 programme in January 2014 and is further expected to Female literacy release US$ 29.0 million.

Source: Census 2011 The state has 20 colleges and 12 standalone institutions, with average enrolment of 1,943 students per college and 75 students per stand-alone institution. By the end of the 12th Five-Year Plan, the state government plans to raise the literacy rate in the state to 80 per cent. There is a proposal to establish five degree colleges, seven new polytechnics, and five new technical/professional In order to boost the female literacy rate, the government colleges in the state. planned to allocate US$ 0.83 million in the 2013-14 budget in a fixed deposit scheme for girls. Under the scheme, US$ Moreover, the government plans to setup two new model 83 would be deposited for each class V girl student, to be colleges at Tirap and Longding districts to improve the made available to her after completion of Class XII. education sector. The government plans to set up more polytechnics across The Northeast states (excluding Assam) ranked sixth best various districts to promote quality technical education. in India on the Human Development Index in 2007-08 with an HDI value of 0.573. Arunachal Pradesh Cabinet recently approved a proposal to establish two new universities in the state. Higher education infrastructure Major higher educational institutes in Arunachal (As of March 2014) Pradesh Universities/deemed universities 4 • North Eastern Regional Institute of Science and Degree colleges 20 Technology*, • National Institute of Technology, Engineering colleges 2 • , Pasighat Polytechnics 2 • Industrial Training Institute (Roing, Daporijo and Medical colleges 1 ) • College of Horticulture and Forestry^ Other colleges 3

Source: Directorate of Higher and Technical Education, Source: Directorate of Higher and Technical Education, Government of Arunachal Pradesh Government of Arunachal Pradesh *Deemed university ^Under the Central Agricultural University To support its huge rural population, Arunachal Pradesh has a three-tier public healthcare infrastructure comprising Health infrastructure in Arunachal Pradesh sub-centres, primary health centres and community health District hospitals 15 centres. In addition, there are district hospitals in most districts. Community health centres 54

Primary health centres 128 For 2012-13, the government set aside US$ 73.0 million for healthcare. Sub-centres 472

Ayurvedic hospitals 11* The Rashtriya Swashth Bima Yojna benefitted nearly 300 families in 2013, as each family was aided with nearly US$ Ayurvedic dispensaries 2* 500 during the year. Homoeopathic hospitals 1*

Health indicators of Arunachal Pradesh (2012) Homoeopathic dispensaries 55*

Birth rate (per thousand persons) 19.4 Source: Department of AYUSH, Ministry of Health & Family Welfare, Death rate (per thousand persons) 5.8 Planning Commission, Government of India *As of August 2011 Infant mortality rate 33 (per thousand live births)

Source: Sample Registration System (SRS) Bulletin October 2013 (www.censusindia.gov.in) There are 26 major tribes and many sub-tribes in Arunachal Pradesh who have a rich cultural heritage and follow distinct languages, costumes and festivals.

The varied culture of the tribes is reflected in their bamboo, wood and cane handicrafts; carpets; traditional ornaments and paintings.

Major festivals observed in the state are Mopin, Solung, Nyokum, Lossar, Si-Donyi, Boori-boot, Dree, Reh, Sipong Yong, Chalo-loku and Kshyatsowai.

Trekking, river rafting, archery, mountaineering, fishing and angling are the prominent sports in Arunachal Pradesh.

Sports infrastructure available in the state includes the Rajiv Gandhi Stadium in Naharlagun, Nyikum Niya Indoor Stadium in Nirjuli and Nehru Stadium in Khonsa.

The key tourist destinations are Parasuram Kund (Lohit), the Namdapha National Park (Changlang), the and Jawaharlal Nehru State Museum (Itanagar), the (Tawang) and the Sela Lake (Bomdila).

In an initiative to develop the tribal community, 630 tribal students benefitted from various Bachelor/PG/Commerce courses at Chandigarh affiliated with Punjab Technical University for undergoing vocational and professional training courses during 2012-13. The government plans to increase the number to 1,000 for 2013-14.

Source: Tourism Department, Government of Arunachal Pradesh Arunachal Pradesh has 12 industrial estates located in different districts and spread over a total area of 51.8 Notified industrial estates hectare. These industrial estates have been developed in land-areas ranging from 4,540 to 202,342.8 square metres, Location District with the primary objective of growth and development of Tirap small scale industries. Khonsa Tirap In addition, the state government has notified integrated Pasighat East Siang infrastructure development centres, industrial growth centres and industrial areas to support industrial growth. Tawang Tawang

Tippi West Kameng In order to promote agro based industries”, the government proposed to provide special incentives such as VAT refund Wanghoo West Kameng for the next five years from the date of production. Naharlagun Papumpare

Moreover, in order to attract more investments, investors Chandranagar Papumpare who set up food processing units, cold storages and tissue culture labs in the state would be provided power dues Namsai Lohit refund at a rate of 10 per cent per year. Changlang Town Changlang

Khachang Changlang

Bam West Siang

Source: Department of Industries, Government of Arunachal Pradesh Notified integrated infrastructure development Notified industrial areas centres

Location District Location District

Deomali Tirap Bhalukpong West Kameng Tippi West Kameng Roing Dibang Valley West Kameng Tezu Lohit Iduli Dibang Valley

Balinong Changlang Banderdewn Papumpare

Source: Department of Industries, Government of Arunachal Pradesh The state government has set up district industries centres (DICs) across districts. These DICs play a vital role in industrial development by providing services to entrepreneurs that include identification of suitable schemes; preparation of project reports; arrangement for providing required plant, machinery and raw-materials; assistance in availing incentives and facilities provided by both central and state governments; and liaison with all development departments and financial institutions to provide assistance to prospective entrepreneurs.

Based on the availability of resources, the state has identified thrust areas for industrial development:

Industries based on agricultural, horticultural and plantation produce;

Industries based on non-timber forest produce such as bamboo, cane (rattan), medicinal plants/herbs, aromatic grass, tea and coffee;

Industries based on locally available raw-materials, except timber;

Textiles (handlooms and power-looms), handicrafts and sericulture;

Electronics and IT-based enterprises;

Mineral-based industries (such as ferro-alloys, cement, etc.);

Facilitation and development of industrial infrastructure, including power and communications, under public private partnership;

Food processing industries and engineering and allied industries (rolling mill, steel mill, etc.); and

Tourism. The state‟s Chief Minister has assured the addition of 0.1 million jobs during the 12th Five Year Plan (2012-2017).

During the financial year 2012-13, creation of 10,000 job opportunities was targeted. However, nearly 17,327 youth were employed during the year, exceeding the set target by a huge margin.

For 2013-14, the target for employment was further raised to 25,000.

In order to propel employment growth, the state government has arranged for training of a 100 candidates at IIWS, Noida, New , during 2012-13. Out of these 100 candidates, 79 were placed and the remaining were engaged in self employment.

The success of the training led the government to increase the number of trainees to 200 in 2013-14.

Furthermore, the state government has announced that a minimum of 10 per cent of the funds allocated to the MLA local area development scheme will be used to train unemployed youths.

This will help them acquire the necessary skills for taking up self-employment activities or for enhancing their employability. The resources, policy incentives and climate in state The Department of Industries, Government of Arunachal support investments in mining and mineral products Pradesh, is responsible for promoting industrial activities in (including cement), tissue culture and floriculture, plantation the state to provide employment opportunities to the rural crops (tea, rubber, etc.) and agro-based industries. and urban people.

North Eastern Development Finance Corporation Limited is The DICs also help the local entrepreneurs in identifying engaged in catalysing industrial growth of the Northeastern suitable schemes, preparing feasibility reports, arranging states (including Arunachal Pradesh) by providing supply of tools and equipment, providing credit facilities, etc. counselling, timely advice and assistance for building quality enterprises. Key industries in Arunachal Pradesh The central government also approved the North East Industrial and Investment Promotion Policy (NEIIPP), 2007. • Art and crafts The policy provides several incentives: incentive on • Weaving business expansion, 100 per cent excise duty and income • Cane and bamboo tax exemption, capital investment subsidy, interest subsidy • Carpet weaving and insurance premium reimbursement. • Wood carving

• Ornaments The Department of Industries has set up District Industries • Tourism Centres (DICs) and Sub-District Industries Centres (Sub- DICs) for the industrial development of small scale, tiny and • Horticulture village industries. • Saw mills and plywood • Power • Mineral-based industry As of June 2014, Arunachal Pradesh had a total installed The government has invited domestic power companies in power generation capacity of 249.43 MW. the region to develop hydropower plants.

Hydro energy (97.57 MW) accounted for around 40.6 per cent of Arunachal Pradesh‟s installed power generation Some of the key players capacity. The Department of Hydropower Development, • NTPC Ltd Arunachal Pradesh, is wholly entrusted with the design, construction, operation and maintenance of hydropower • NHPC Ltd projects in the state. • North Eastern Electric Power Corporation (NEEPCO)

• Bhilwara Energy Ltd Under NEIIPP, 2007, power generating plants receive incentives as governed by the provisions of Section 81A of the Income Tax Act. In addition, power generating plants (based on both conventional and non-conventional sources) with a capacity of up to 10 MW are eligible for capital investment subsidy, interest subsidy and comprehensive insurance.

On account of its hilly terrain and abundant rivers, Arunachal Pradesh is estimated to have hydropower potential of 60,000 MW (through mega projects).

Key regions for tapping hydropower include Dibang, Tawang, Subansiri Upper, Subansiri Middle, Kameng and Lohit. • NTPC Ltd is a Maharatana Public Sector Unit (PSU) engaged in thermal power production. NTPC Ltd • The company is a leading thermal power generator. It has also diversified into hydropower, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution. • NTPC plans to set up a hydropower project of around 9,500 MW in Upper , Arunachal Pradesh. The company‟s revenues stood at US$ 13.1 billion in 2013-14.

• NHPC Limited (formerly known as National Hydroelectric Power Corporation Limited) is a public NHPC Ltd sector major in hydroelectric power generation. • The company signed an MoU with the state to invest US$ 4.5 billion during the 12th Plan period and already has four ongoing projects with an installed capacity of 6,400 MW. Two are located in the , one in the Dibang district and one in Subansiri Lower district.

• North Eastern Electric Power Corporation (NEEPCO) is a central PSU engaged in power North Eastern Electric generation in the Northeastern region. It is one of the oldest power generating companies and Power Corp (NEEPCO) controls 55.0 per cent of the region‟s installed capacity. • The company completed the prestigious 405 MW Ranganadi project in Arunachal Pradesh. NEEPCO is developing two projects in the state: Pare hydroelectric project (110 MW) and Kameng hydroelectric project (600 MW).

Bhilwara Energy Ltd • Bhilwara Energy Limited is a part of LNJ Bhilwara group. • The company signed three MoUs for development of hydropower projects in the state at Tawang, Angoline and Malinye. The company‟s revenues stood at US$ 75.2 million in 2012-13.

• Jindal Power Limited (JPL), a subsidiary of Jindal Steel & Power Ltd, has major presence in Jindal Power power generation and has set up several mega power projects in the country. • JPL signed agreements for development of three hydroelectric projects with a combined capacity of 6,100 MW in Arunachal Pradesh in joint venture with Hydro Power Development Corporation of Arunachal Pradesh Limited. Hydro power projects in the North East

Central sector Private State/unallocated

Total Installed Installed Installed No of No of No of Total installed capacity capacity capacity schemes schemes schemes schemes capacity (MW) (MW) (MW) (MW) Arunachal 3 4,400 89 31,873 4 51 96 47,224 Pradesh Assam - - - - 7 513 7 513

Manipur 2 1,566 - - 7 573 9 2,139

Meghalaya 1 85 5 974 9 1,155 15 2,214

Mizoram 5 2,196 - - 1 80 6 2,276

Nagaland - - 1 186 2 190 3 376

Tripura ------

Sikkim 2 730 12 1,744 1 72 15 2,546

Total 13 8,977 107 34,777 31 13,534 151 57,288

Source: Ministry of Power, Annual Report 2012-13 Arunachal Pradesh has been identified as a major potential area for power production. In the 12th Five-Year Plan, a total of 96 hydropower projects having a generation capacity of 47,000 MW were announced for the state. Arunachal Pradesh has the potential to generate 60,000 MW of hydro power. The central government identified 13 hydro electric projects that are key to the state.

The government recently allocated a total of 102 hydro power projects aggregating 35,031.5 MW to private players. This was due to reallocation of some projects from public companies to private companies.

Four of the biggest projects currently under construction include the 2,000 MW Subansiri Lower, 600 MW Kameng, 110 MW Pare and 1,750 MW Demwa Lower hydroelectric projects. These projects are expected to be completed between 2013 and 2017.

A 2x30 KW Ashapani micro hydel project has been commissioned in of the state, with an objective of electrification of circle and its adjoining villages.

The Ministry of Environment and Forests (MoEF) granted pre-construction scoping clearances to over 50 projects under the EIA notification 2006. Final environmental clearance has been awarded to 13 projects.

The sixth meeting of the task force on Hydro Project Development was held in in September 2013, wherein the state government urged the Union Ministry of Power to speed up the process of granting the remaining clearances.

Arunachal Pradesh would get 12 per cent power from each project for free, making it a power surplus state and enabling it to generate revenues through sale to other states. The State Industrial Policy, 2008, of Arunachal Pradesh lists mineral-based industries (such as ferro-alloys, cement plants, etc.) as thrust sectors. Arunachal Pradesh Mineral Development and Trading Corporation Limited (APMDTCL) manages the state‟s mining activities.

During 2010–11, mineral production generated US$ 78 million for the state‟s exchequer. Total extraction of coal since April 2007 to February 2012 was one million tonnes. In 2010–11, total coal production in the state was 299,000 tonnes.

Source: Maps of India Reserves/resources of minerals in Arunachal Pradesh (as of March 2011) Arunachal Pradesh has considerable mineral reserves, and Ore/mineral Reserves (million tonnes) preliminary studies have highlighted economic mineral deposits in considerable quantity. Coal 90.23 Dolomite 77.83* The state has reserves/resources of coal in Namchik Limestone 482.79* Namphuk Coalfields; dolomite in West Kameng district; fuller's earth in ; graphite in Lohit, Upper Siang Graphite 72.75* and Upper Subansiri districts; and limestone in Dibang Fuller's earth 20.01* Valley, Lohit, Upper Siang and Upper Subansiri districts. Quartzite 5.27*

Source: Indian Bureau of Mines, *As of March 2010 Arunachal Pradesh‟s agriculture and allied sectors have The State Industrial Policy, 2008, of Arunachal Pradesh lists growth rates that are three times the national average. agriculture and non-timber forest produce-based industries as thrust sectors. Major agro and forest based industries in the state are related to tea, fruit, non-timber and plywood industries. The state set up a programme named “Chief Minister‟s Around two-thirds of the state‟s population is dependent on Agriculture Mechanisation Programme”, which was meant agriculture. to provide financial aid to farmers to purchase farm machineries. The state government‟s New Agricultural Policy 2001 aims to achieve higher economic growth and create job In the 2013-14 budget, the government set aside US$ 1.7 opportunities for the unemployed in rural areas. The state million for the Agriculture Mechanisation Programme and government is focusing on improving farmer income through US$ 2.5 million to promote rubber and tea plantation. higher productivity, use of suitable farm techniques, upgrading technical competency, marketing support and availability of a cooperative credit network. Arunachal Plywood Industries Limited Non-timber based industries include bamboo, cane, rubber • Arunachal Plywood Industries Limited (APIL) is and medicinal plants. among the oldest plywood manufacturing units in the country. The industry is characterised by many regional players; • The company manufactures bamboo boards, pre- several units have been set up by the Arunachal Pradesh fabricated houses, pallets/crates and bamboo mat Forest Corporation (APFC), a government organisation. boards. The pre-fabricated structures are not only eco-friendly, but also cost effective and long lasting. APFC has taken up a project on capacity building for • The company has its manufacturing unit at Namsai, production of bamboo-based industrial intermediates at Arunachal Pradesh. Poma village near Itanagar. Tourism has grown rapidly in the recent years with eco and The inception of railways in the state is expected to boost adventure tourism, cultural tourism and religious tourism tourist arrivals. The government inked an MoU with the being the major areas of interest. Major sports of interest to Indian Railway Catering and Tourism Corporation for travellers include angling, boating, rafting, trekking and promoting the tourism sector. hiking. To boost tourist inflow and make the state more visitor Arunachal Pradesh is an “Orchid Paradise”, accounting for friendly, the government is working on simplifying the 601 species of orchids, or 52 per cent of the species known process of application & issuance of the . in India. An orchid research centre has been established at A new railway line between Assam and Pasuramkund, a Tipi to promote orchid conservation, research and Hindu pilgrimage site, is in the planning stage. development.

The State Industrial Policy, 2008, provides incentives for Arrivals of domestic tourists in Arunachal developing tourism infrastructure, with special focus on Pradesh (in „000s) public-private partnerships in tour operations, hotels and resorts. The central government‟s Look East Policy is 310 initiating tourism as a means to increase trade with other South East Asian countries. 233 In 2009–10, Arunachal Pradesh received financial 227 195 assistance from the central government for developing sustainable rural tourism that is aimed at promoting 149 traditional rural craft, textile and culture to develop the rural economy. 91

Under the „Chief Minister‟s Paryatan Vikaas Yojana‟, a project has been launched to provide subsidised tourist cabs to educated unemployed youth across districts. For this, a provision of US$ 0.83 million was made during 2013-14. 2007 2008 2009 2010 2011 2012

Source: Economic Times, Times of India, Ministry of Tourism, Government of India Textile is a grass-roots industry in Arunachal Pradesh and provides employment, mainly to women. Most of the units are home-based and have a small scale of operations.

The state boasts of an enriching array of unique and appealing handloom designs from each of its tribes. The products include skirts (gale), shirts (galuk), cotton shawls, side bags, and curtain cloth.

Carpet making is one of the important occupations in the districts of Tawang, West Kameng, Changlang and Upper Siang. The state‟s carpets have received national and international repute due to their quality. The carpet weaving industry is promoted through the Government Craft Centre.

Sericulture is also practised in the state; in 2012–13, the state had 240 hectares of area under silk production and produced about 22 Metric Tonnes of raw silk. To give a major thrust to this business, Arunachal Pradesh‟s government is reorganising the existing seed production centre by providing additional operational buildings and technical staff. It is also supporting rearers by supplying the required seeds, planting materials and rearing appliances, among others.

The Department of Textile & Handicraft(s), Arunachal Pradesh, supports the textile sector‟s development. It provides self- employment opportunities to weavers and artisans through several development projects. There are 88 crafts centres imparting training in different trades. The department has 15 Emporia, three mini sales Emporia and five showrooms for marketing handloom and handicraft products manufactured by local artisans.

Under the Integrated Handloom Development Scheme, 22 clusters were taken up in the state between 2007–08 and 2011– 12.

The Union Ministry of Textile approved establishment of the National Institute of Fashion Technology (NIFT) at in . Source: Department of Textile & Handicraft(s), Arunachal Pradesh Central Silk Board, Ministry of Textiles – Government of India Concerned department of S No List of approvals and clearances required state

1 Incorporation of company/partnership firm/co-operatives Registrar of Companies

2 Registration, Industrial Entrepreneurs Memorandum (IEM), industrial licenses Department of Industries 3 Permission for land use

Arunachal Pradesh Industrial Development and Financial 4 Allotment of land Corporation Limited/ Department of Industries

5 Site environmental approvals Ministry of Environment and Forests, Government of India; Arunachal Pradesh State 6 No-objection certificate and consent under Water and Pollution Control Act Pollution Control Board (APSPCB)

7 Registration under State‟s Sales Tax Act and Central and State Excise Act Department of Tax and Excise, Government of 8 Commercial taxes Arunachal Pradesh

Source: Government of Arunachal Pradesh Concerned department of S No List of approvals and clearances required state

9 Sanction of power Department of Power, 10 Power feasibility Arunachal Pradesh

11 Power connection

Respective District 12 Approval for construction activity and building plan Municipality

13 Water and sewerage clearance Department of Public Health Engineering 14 Water connection

Source: Government of Arunachal Pradesh Agency Description

• The Department of Industries is the main executive and regulatory agency functioning under the state government. It oversees and monitors the overall industrial development activities in the state. • The department is engaged in various activities such as: a) Formulating Industrial Policy and setting up of industrial estates/growth centres/ district industries centres. Department of Industries b) Registering and regulating industries. c) Providing financial assistance to small scale and other industries. d) Distributing scarce and indigenous raw-materials to different industrial units. e) Apprenticeship Training Programmes through ITIs and other industrial development related activities.

• Incorporated under the Companies Act, 1956, in August 1978. • Set up to promote and finance industries in Pradesh. Arunachal Pradesh Industrial • Develop infrastructure facilities (currently being handled by the Department of Development and Financial Corporation Industries, expected to be handed over soon). Limited (APIDFC) • Implement schemes of assistance of National Scheduled Castes and Scheduled Tribes Finance and Development Corporation Limited (NSFDC).

• State Designated Agency (SDA) for implementation and enforcement of the Energy Conservation Act, 2001, in coordination with the Bureau of Energy Arunachal Pradesh Energy Efficiency (BEE), Ministry of Power, Government of India. Development Agency (APEDA) • Also the state nodal agency for projects connected with Clean Development Mechanism (CDM). Agency Description

• NEDFi is promoted by leading public financial institutions: Industrial Development Bank of India (IDBI), (SBI), Life Insurance Corporation of India (LIC), Small Industries Development Bank of India (SIDBI), Industrial Finance Corporation of India (IFCI), Industrial Credit and Infrastructure Corporation of India (ICICI), Specified undertakings of Unit Trust of India (SUUTI), General Insurance Corporation of India (GIC) and its North Eastern Development Finance subsidiaries. Incorporated in August 1995, NEDFi is headquartered in Corporation Limited (NEDFi) Guwahati, Assam, and works under the administrative control of the Ministry of Development of North Eastern Region (DoNER), Government of India. • It services micro, small, medium and large enterprises through facilities such as project and equipment finance, working capital finance, schemes for development of entrepreneurial skills and market development for products from the Northeast.

• Under the administrative control of the Ministry of Development of North Eastern Region (DoNER), Government of India. North Eastern Handicrafts and • Develop and promote indigenous crafts of the region. Handloom Development Corporation • Establish and operate sales centres for improving marketability of goods. (NEHHDC) • Provide financial, technical and other assistance to craftsmen, weavers, co- operatives and other establishments. • Provide training for upgrading traditional skills. Agency Contact information

Government of Arunachal Pradesh Udyog Sadan, ltanagar - 791111 Department of Industries Phone: 91-360-2212 323/ 2214 456 Fax: 91-360-2211 569 E-mail: [email protected]

C Sector, Near Petrol Pump Arunachal Pradesh Industrial Development and Itanagar - 791111 Financial Corporation Limited(APIDFC) Phone: + 91-360-2211 763, 2212 012

Urja Bhawan, Tadar Tang Marg Post Box No 141, Arunachal Pradesh Energy Development Agency Itanagar - 791111 (APEDA) Arunachal Pradesh Phone: 91-360-2211 160, E-mail: [email protected]

NH-52A, Main Road, E-Sector, North Eastern Development Finance Corporation Ltd Itanagar - 791111, (NEDFi) Arunachal Pradesh Phone/Fax: 91-360-2217 694 Cost parameter Cost estimate Source

Hotel costs (per room per night) US$ 8 to US$ 75 State Tourism website

Commercial: US 7.9 cents to US 9.9 cents Department of Power, Government of Power cost (per kWh) Industrial: US 6.2 cents to US 8.3 cents Arunachal Pradesh

Labour cost (minimum wages per Unskilled: US$ 3.0 to US$ 3.4 Ministry of Labour and Employment, day) Skilled: US$ 3.2 to US$ 3.6 Government of India

Water (per 1,000 litres) Commercial and industrial: US 15.7 cents Industry sources Public Private Partnership Policy 2011

Objectives • Leverage State and Central Government funds to support private investment • Prepare a shelf of projects to be offered for PPP and take them forward with the assistance of the owner departments through a transparent selection process Read more

State Industrial Policy 2008

Objectives • Facilitate and promote growth of the industry, employment and investment in the state • Promote export oriented industrial units Read more

Hydro Power Policy 2008

Objectives • Harness hydropower potential of the state in a manner that is consistent with the provisions of the Electricity Act, 2003, and the National Electricity Policy and other policies formulated in the Act. • Accelerate the pace of hydropower development through participation of both the central public sector undertakings and private power developers, and also by formulating public private partnerships. • Help creation of social and development infrastructure through hydropower development. Read more Small Hydro Power (SHP) Policy 2007

Objective • Facilitate and promote growth of small hydropower plants through private participation, thereby increasing employment opportunities in the state

Read more

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

Objective • Promote the Northeast as an attractive investment region through concessions and incentives

Read more

Agriculture Policy 2001

Objective • Achieve higher economic growth and create job opportunities for the rural unemployed through agriculture and allied sectors

Read more Average exchange rates

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

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