Government of Assam Investment opportunities in Assam Shri

Government of Assam Investment opportunities in Assam Shri. Rajesh Prasad, IAS Commissioner of Industries & Commerce, Assam 25/03/2014

ASSAM AT A GLANCE Location : Gateway to the North Eastern Region Population: Assam is home to over 3. 11 million and 3. 76% of India’s Population resides in North Eastern India; 6. 5 % of the World’s Population lives in the hinterland of Eastern India, Nepal, Myanmar, Bangladesh and Bhutan

• Guwahati is well connected with all the metro cities of the country Zero Lakhimpur To Delhi • Direct flight to Bangkok two days in a week. • Cargo Handling facility at Guwahati Bagdogra Tezpur Guwahati Kolkata ROADWAYS AIRWAYS CONNECTIVITY Silchar Agartala Dibrugarh Jorhat Dimapur Imphal • Well connected to all metros in India • States within the region are well connected by State Highways and National Highways • The 4 lane East West Corridor passes through the State Guwahati is the hub for inter and intra regional connectivity

§ River Brahmaputra declared 2 nd National Waterway & River Barak as 6 th National Waterway § Pandu, Guwahati and Karimganj designated as Ports of Call § 1983 kms of Navigable Waterways within the state RAILWAYS WATERWAYS CONNECTIVITY § Broad gauge railway linkage upto Tinsukia & Lakhimpur (Total railway route length 2434 kms) § Inland Container Depot (ICD) at Guwahati is the hub for inter and intra regional connectivity

Proximity to SAARC & ASEAN Countries • Gateway to the North Eastern India • Corridor to South East Asia • Nearest to the Fastest Growing Economies of Asia – China, Thailand, Myanmar, Malaysia, Philippines, Cambodia, etc. Bhutan Bangladesh Cambodia • Proposed connectivity through Asian Highways and Trans Asian Railways Government of Assam

RESOURCE PROFILE OF ASSAM Mineral Resources • • • Coal Petroleum Natural Gas Limestone Sillimanite and salt Granite • Iron Ore • Quartzite • Clay (Indicative List) Assam represents a wide spectrum with a host of mineral deposits among which oil and natural gas has been commercially exploited

ASSAM – RESOURCE PROFILE Agro – Horti Resources MAJOR CROPS Rice, Maize, Jute, Wheat, Pulses, Arecanut, Coconut, Potato, Sweet Potato, Tapioca FRUITS, SPICES & VEGETABLES Banana, Orange, Citrus fruits, Pineapple, Jackfruit, Guava, Papaya, Onion, Ginger, Black Pepper, Chillies, Turmeric MAJOR PLANTATION Tea, Bamboo & Rubber (Indicative List)

POLICY ENVIRONMENT The Highlights of the NEIIPP 2007 • 100% Income Tax and Central Excise exemption for a period of 10 years for units located anywhere in the North East • 90% Freight Subsidy scheme for both raw material and finished products to and from the region for a period of five years. • 30% Central Capital Investment Subsidy for new and existing units • 3% Working Capital Interest subsidy on loan for a period of ten years. • 100% reimbursement of Insurance premium for a period of 10 years.

POLICY ENVIRONMENT The Highlights of the NEIIPP 2007 for coverage of Services sectors , like Hotels, Adventure Tourism, Amusement Park generation of power, Biotech Industries, etc. State Policy, 2014 • Exemption of Value added Tax up to 15 years • Special incentive to Mega projects • Exemption on Entry Tax • 50% exemption on Luxury tax, etc

NATIONAL POLICY ON DIRECT INVESTMENT 100% FDI on the following sectors fall under the Automatic route § Power – Generation (except Atomic), Transmission and Distribution § Roads - All road development projects incl construction and maintenance of roads, highways, vehicular, bridges, toll roads, vehicular tunnels § Existing Airports – 100% but FIPB approval required for FDI beyond 74% and 100% FDI in Greenfield projects § Horticulture, Animal Husbandry, cultivation of vegetables, mushrooms, Tea Plantation, Floriculture, etc. under controlled conditions and services related to agro and allied sectors § § Hotels and Tourism Inland Waterways infrastructure development Trading of items sourced from SSI units Retail trading

INDIA –THAILAND : TRADE & INVESTMENTS Foreign Trade Performance § Exports to Thailand valued at USD 1810. 87 million during 2007 -08 increased to USD 3732. 66 million during 2012 -13 § Imports from Thailand q Import from Thailand valued at USD 2300. 93 million during 2007 -08 increased to USD 5459. 23 million in 2012 -13 q § Total Trade with Thailand q The total trade valued at USD 4111. 80 million in 200708 increased to USD 9191. 89 million in. 2012 -13

INDIA –THAILAND : TRADE & INVESTMENTS FDI Inflow § 34 th largest investor in India § 4 th largest from the ASEAN region, after Singapore, Malaysia and Vietnam Indian investment in Thailand § Thailand’s Board of Investment approved 25 Indian projects in 2012 § Investments in Thailand worth over USD 200 Million in 2012 § Major areas include automobiles, steel, software, chemicals, textiles, chemicals, pharmaceuticals etc

WHY INVEST IN ASSAM ? § Endowed with Natural Resources § A vast human resource base of skilled, semi- skilled and educated manpower, at extremely competitive costs § Total Tax Free Zone § Access to large markets of mainland India, south and south East Asia which together comprises over 50 % of the world population and includes some of the fastest developing economies in the world § Proximity to the SAARC countries of Bhutan and Bangladesh gives foreign investors the advantage of international trade In short, Assam’s location advantage and rich natural resources provide a backdrop to its development as a base foreign investors

THRUST AREA FOR INVESTMENT IN ASSAM Inland Waterways – Present Status § Size q q Major routes are over Brahmaputra and Barak river Navigable length are 891 km from Sadiya to Dhubri over Brahmaputra and 121 kms in the Barak river Seven port locations operational for Import and Export with connectivity to Kolkata and Haldia port Approx 2. 56 Million Ton of Cargo traffic in 2011 – 12 § Structure q q q Majority of the routes are under the Govt. Private sector participation in Cargo and Cruises Development of River Port facility.

THRUST AREA FOR INVESTMENT IN ASSAM Inland Waterways § Outlook q q q Increase the traffic by as it has potential. Harnessing the power of the cheapest means of transport Open up access to ASEAN through Bay of Bengal § Opportunity q q Transportation of both people and cargo Maintenance of the fairways e. g Dredging of river to maintain the flow of vessels. Opportunities in Infrastructure development for facilitating transportation like ports, piers, mechanized handling facilities, Navigational aids, terminal development etc Floating Restaurants, Shopping arcades, Convention centers, etc

THRUST AREA FOR INVESTMENT IN ASSAM Air Infrastructure & Connectivity – Present Status § Size q q q Assam has 6 operational airports; of these, the Guwahati airport is designated as an International Airport. Small private airstrips in the interior area are present in large numbers In 2012 there was an 41% increase in passenger carried per week between the summer and winter of 2012. § Structure q q The airports are owned and operated by the Airports Authority of India Some small and remote airstrips with varied degree of operation are under private operators like Tea gardens, PSUs etc

THRUST AREA FOR INVESTMENT IN ASSAM Air Infrastructure & Connectivity § Outlook q q q Major investments planned in up-gradation of existing airports anticipating the demand Pre Feasibility Study for construction of New Green Field Airport at Kokrajar conducted by AAI Guwahati can be the hub of International flights to the ASEAN. § Opportunity q q q Developing Green field projects Up-gradation of abandoned airstrips at strategic locations Cargo handling & other facilities in airports

THRUST AREA FOR INVESTMENT IN ASSAM Power – Present Status § Size q q Total generation in the state is 376. 7 MW More than 15, 000 Kms of T&D lines Average peak demand is 1500 MW, available from various sources is 1024 MW. Only 74% of the rural villages are connected § Structure q q Majority of Generation, Transmission and Distribution capacities are with PSUs and State Electricity boards Private sector participation is anticipated

THRUST AREA FOR INVESTMENT IN ASSAM Power § Outlook q q q Over 1, 500 MW of new generation capacity is required in the next few years in the state Corresponding investment in T&D Power costs need to be reduced, increased generation efficiencies and added low cost generating capacity § Opportunity q q Large demand-supply gap Opportunities in Generation for: Hydro, Coal based, Natural Gas based and alternative energy of different capacity Opportunities in Transmission network ventures Opportunities in Distribution through bidding for the privatization of distribution.

THRUST AREA FOR INVESTMENT IN ASSAM Tourism – Present Status § Size q q There is an increase of over 13. 6 % in the number of International tourist arriving Assam in 2012 4. 5 million domestic tourists visited the state in 2012 -13; an increase of over 10. 20 % of 2010 -11. Average occupancy of 65% last year Guwahati will have its first 5 star category during this year. § Structure q q Private sector dominate the industry Government involved in infrastructure and marketing

THRUST AREA FOR INVESTMENT IN ASSAM Tourism § Outlook q q q Foreign tourist arrivals are expected to grow many folds in the coming years Domestic tourism is expected to increase by 20% p. a. Corresponding investment in Tourism and related activities § Opportunity q q Tourism Infrastructure - Hotels , Resorts, Amusement, River Cruises, Developing Airstrips in remote areas Joint Tourism Circuit Development – Heritage circuits, wildlife tourism, Eco-tourism, Cultural Tourism, Pilgrimage and Tea – Golf circuits etc. eg. Pukhet and Kaziranga can be offered as a combined tourist destination

THRUST AREA FOR INVESTMENT IN ASSAM Food Processing – Present Status § Size q q q Less than 30% of the food products are processed 80% of these constitute the Primary Food Processing (packaged milk, milled flour and rice, tea, spices, etc. ) Packaging of perishables including fruits and vegetables is negligible § Structure q q q This sector has limited private operators in the organised sector Some co-operatives, especially in the dairy sector are operational There is a presence of major companies including MNCs through franchisees

THRUST AREA FOR INVESTMENT IN ASSAM Food Processing § Outlook q q The sector has the potential to grow in the state with increasing demand for processed food The wastage of perishable due to non availability of processing infrastructure & utilities will be reduced in the next few years § Opportunity q q q Favorable agro climatic condition is conducive for a wide range of products Opportunities in processing, sourcing etc Inclusive farming and processing of products Logistics & Cold chains One Mega Food park is under construction at Tihu and to be completed by June, 2014.

THRUST AREA FOR INVESTMENT IN ASSAM Horticulture – Present Status § Size q q 90% of the population in Assam is rural, with 74% dependent on agrarian and allied activities Horticulture production both in homestead as well as in farms Production base in essence is Organic An average of 70% of the total production of Horticultural products are Marketable surplus § Structure q q Both state and central government in the promotion and development of this sector Regulations in logistics and marketing Unorganised private sector dominant in retail sales Few private players in the organised sector

THRUST AREA FOR INVESTMENT IN ASSAM Horticulture § Outlook q q The sector has the potential to grow in the state with increasing new crops with high demand being given thrust Spectacular growth rate in the last 5 years Transforming the region from de-facto Organic by certification New horizon of linking up with Tourism e. g. Organic vacations § Opportunity q q q Favorable agro climatic condition is conducive for a wide range of fruits, vegetables, medicinal & aromatic plants, flowers, spices etc Opportunities in sourcing organically produced fruits & vegetables Value addition in the chain e. g. processing, extraction, packaging

THRUST AREA FOR INVESTMENT IN ASSAM Bamboo – Present Status § Size q q q The region has the highest concentration of bamboo having high potential for commercialization. Approx 60% of the total bamboo of the country Bamboo flowering has started in the region Substantial areas under homestead cultivation and commercial cultivation is taking place § Structure q q q The felling and cutting of bamboo is regulated by the Forest department. Central and state laws for harvest, Trade and Transit Private sector investment in industry

THRUST AREA FOR INVESTMENT IN ASSAM Bamboo § Outlook q q q New products, new applications: transforming an age old material Identify, develop, test, validate & commercialize technologies, processes & products for new products and application Bamboo as a substitute to timber in the next decade § Opportunity q q q Reinventing bamboo in Plywood units and Paper Mills Micro-propagation & production; Shoot processing Industrial products/ gasification, Fibre & thermoplastics Machinery & equipment Skill up gradation and training Bamboo Park is under construction and to be completed by June, 2014.

AREAS FOR CO-OPERATION IN THAILAND § ICT and related activities including Training & Education § Low skill data processing & publishing works § Down Stream Industries based on “ Assam Gas Cracker Projects- BCPL” at Dibrugarh. § One Plastic Park at Tinsukia is under construction. § Joint ventures in: q Tourism q Food Processing q Healthcare q Print Media q Organic Food products q Tea Contd.

AREAS FOR CO-OPERATION IN THAILAND § Several New Parks under construction: § Jute Park at Dhing, Nagaon § Tea Park at Chaygaon § IT Park at Guwahati Investors are welcome to invest in Assam.

Connectivity to Thailand from NER §River Route from Guwahati to Thailand through River Protocol-1 : River route from Guwahati – Haldia via Bangladesh and Sea Route from Haldia to nearest coastal Port of Thailand. OR Guwahati – Mangala/ Chittagong (Bangladesh) through River Route and then Sea route to Thailand Contd.

Railways §NF Railway is expanding its activities to connect ASEAN through Myanmar: §Railway line from Silchar to Moreh is under construction. §Silchar-Jiribam – Tupul is likely to be completed by March, 2014. §Tupul to Imphal to be completed by March, 2016. §Imphal to Moreh ( the missing link) to be constructed to connect Myanmar and beyond.

Asian Highways Asian High way is under construction and to be completed by March, 2016. Government of India is assisting Myanmar for reconstruct/ realiegnment of roads, construction of new bridges, etc. to connect ASEAN countries

To Sum up The Government of Assam is committed towards facilitating and creating a long – term business relationship with Thailand & to transform the region into a corridor for South East Asia to rest of India

Thank You Visit us at www. investinassam. com