Manthan

Sunrise States: Realizing the growth potential of North-East

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Sanyog-KshamtaOpening gates to the North-East Connectivity means Prosperity

Team Name: BanarasiaTeam Coordinator – Nishchal KumarEmail : nishchal1116@gmail.com

Indian Institute of Technology, Banaras Hindu University, Varanasi

Inclusive growth calls for inclusive governance. The North Eastern Region has long establishedtraditions of community-based economic and social organization. This has facilitated a smoothtransition to contemporary institutions of Panchayati Raj in all of Sikkim and Arunachal Pradesh; mostof Assam and Tripura; and the valley areas of Manipur.

Due to the secessionist movements in different parts of the region and lack of governmentcoordination among various states and central government have also caused much hindrance to theregion’s development. It is further recognized that an imaginative leap in foreign policy, defense policyand internal security policy, as much as in investment, infrastructure and commercial policy, isrequired to end the Region’s geo-political isolation and put it on the path to accelerated and inclusivegrowth.

At Independence, the North Eastern Region was among the mostprosperous regions of India. Sixty years on, the Region as a whole,and the States that comprise it, are lagging far behind the rest of thecountry in most important parameters of growth.

The Partition of India in 1947 isolated the region from its traditionaltrading routes of such as Inland Waterways of Brahmaputra which ledit to the trading hubs of Dhaka and sea ports of Chittagong( modernday Bangladesh) gave a severe blow to its prospect of its indigenousindustrial growth and development.

Coupled with the fact of poor connectivity is the seldom presence ofHeavy Industries in the region. The small scale and medium scaleindustries though present the sector is highly unorganized. Thusneither the people who are involved in such professions are able tobenefit themselves nor the local governments are obtaining anyrevenue thus weakening their economy further.

Most of the population like rest of India are agriculture dependent butdue to poor trade connections with India and rest of the world ,thepeople are not able to reap benefits of their agricultural products.Though the states boast of having literacy rates which is higher thanthe national average, unemployment is a grave problem in the regiondue to absence of heavy industries and service sectors.

Emphasizing mainly on improving connectivity of the north-East with the rest of India as well aswithin itself.

Enhancement in connectivity will promote trade activities with the region being able to exportits indigenous agricultural and industrial products and also be able to import goods of dailynecessity from neighboring countries.

This will further promote development of industries in the region which are detailed later Better connectivity and infrastructure will pave way to massive job opportunities and prosperity. This will ensure boost in tourism activity. Parallel investment in healthcare and education.We propose a time period of 5-7 yrs. for the implementation of whole projects.We propose a strategy which overcomes the present massive problems of inefficiency,

mis- governance and lack of coordination among states and centers.

Problem Analysis

Our Strategy

Present Status

Rail Network: The total length of rail network in north east is 2602 km (broad gauge =1454 Km and meter gauge =1148 Km). Non-electrified.

Road Network: It has five main national highways of two lane only. These are NH 36,37,39,40 and 53. State Highways are almost non existent

Airlines : Though each state boasts of at least one domestic airport , very few carriers connect them with rest of India. Most of them are used for carriers andcargo transport through air is minimal thus not generating enough revenue for the airlines.

Developing 4 lane quality roads and electrified Double line railnetwork parallel to Brahmaputra river on both sides with properinterconnectivity through bridges with in 200 Km.

Connecting all the States capital with each other an d also with thesetwo main route through 4 lane road and double line electrified raillinks.

These states capitals will be connected to the small towns and villagesof the state through 2 lane structure roads.

All the major tourist destinations will have proper road connectivitywith the 4 lane roads.

Special structured 2 lane roads will be constructed in the strategicallyimportant areas specially China border to ease the military access andtheir cargo.

Guwahati will be developed as a major international airport in the area.

This will have daily connectivity with at least 5 to 6 Indian metro cities as well as with Dhaka,Yangoon, Kathmandu etc.

This will boost inflow of tourists as well as promote international trading.

It is estimated that the North Eastern Region has about 1,800 kilometers of river routesthat can be used by steamers and large country boats. Ferry ghats (crossing points) on theBrahmaputra, transporting both passengers and cargo will be developed.

The rivers Lohit, Subansiri, Burhi Dihing, Noa Dihing (AP), Dhaleshwari, Sonai, Tuilianpui,and Chimtuipui in Mizoram, Manipuri river in Manipur along with its three main tributaries,the Iril, Imphal, and Thoubal will be used for navigation with small country boats inconvenient stretches.

Sea-port: Diplomatic talks with Bangladesh Govt. are being carried out by Indian

Government to provide access to seaport near Chittagong through Tripura .Governmentshould make every effort to make this real .A rail network may also be developed to connectthe sea port with Agartala to enhance the benefits for both countries.

Rail and Roads

Airways

Connectivity

Route Distance (in Km) Cost(Rs.crore)/Km

Total (in Rs crore)

Kohima -Imphal 139 22 3,058

Imphal - Silchar 412 22 9,064

Aizwal - Agartala 301 22 6,622

Guwahati - Shillong 100 22 2,200

Silchar – Kumarghat 200 22 4,400

Itanagar - Lakhimpur 100 22 2,200

Nalbari – Tezpur - Dibrugarh 500 10 5,000

NaiJalpaiguri – Guwahati - Dibrugarh 964 10 9,640

Total Cost (in Rs Crore) 52,200

Route Distance (in Km)

Specification Cost (Rs crore)/Km

Total (in Rs Crore)

Goalpira-Dispur-Tezpur 849 4 Lane 1.5 1230

NJP-Tezpur-Dibrugarh 690 4 Lane 1.5 1035

Dispur-Shillong 182 4 Lane 2.5 455

Jorhat-Imphal 250 4 Lane 2.5 625

Imphal-Silchar-Aizwal 412 4 Lane 2.5 1030

Silchar-Agartala 308 4 Lane 2.5 770

Aizwal-Ambossa(Tripura) 81 4 Lane 2.5 203

Itanagar-Lakhimpur 36 4 Lane 2.5 90

State Capital to towns 5000 2 Lane 1 5000

Strategic 1000 2 Lane 2 2000

Total Cost 12438

Cost Estimation of Railways

Connectivity across Brahmaputra• Wide Brahmaputra has very few rail and road

bridges.• It compels the locals to use boats and other services which are

both uneconomical and unsafe. • We suggests one rail road bridge at Amguri-Majuli. and a road

bridge near Kamargaon in Assam.• By reducing the travel time they will help the locals • As well as boost tourism. • Total cost = Rs 2000 Cr + Rs1000 Cr• This cost can be recollected with in 10 or 15 yrs by levying a

nominal charge on the vehicles using it.

Cost Estimation of Roadways

TourismTourism has been lifeline of many Indian states. North East is a land of beautiful hills (covered both with forest and snow) and plains with luxurious green cover. In a wide variety of rare andexotic flora and fauna. The land with many distinct tribes, culture interestingly is one of the declared bio spherical zone of the world. Its distinct culture and varied topography present the bestparadisiac place to the tourist. But unfortunately. Lack of proper connectivity and basic infrastructure eludes the tourists from this heaven.

Ensuring better connectivity and improved infrastructure and amenities to the tourist as explained,tourism can be expanded on the following lines:

Religious Sites: Kamakhya Temple, Gowahati, Majuli Island, Buddhist Monasteries (Tawang,Bomdilla), churches (Shillong)

Scenic Beauty: Snow laden peaks in AP, Cherrapunji, lakes, trekking, rafting, jungles, caves,waterfall, tea gardens,

Nature and Wildlife: National parks (Kaziranga, Manas) Wildife Sancturies (Orang), OrchidsGarden

Local Culture: Bihu dance, Nagas Hornbill festival, Cherav Dance-Mizoram, Kuki Dance-Manipur

Promoting Tourism:

Connecting all big and small tourist spots with proper roads and public and private transportation.

Appointment of one or two well known people as ambassadors of region . Developing websites providing details of hotels, places to see and modes of transport. with

booking facility available. Constructing proper hotels and guest houses with decent amenities (electricity,

entertainment, varied cuisines) at these places. Developing proper natural sites for rafting, mountain trekking, forest exploration with proper

guides. Developing Eco-camps and at proper places to attract tourist. Globally recognizing the religious sites, natural parks, tea gardens through widespread

publicity. Promoting tour packages through govt agencies providing all facilities to cater tourists. Toy trains can be run at specific locations and during some time of year.

Strategies:

Impact of Tourism:

North East attracts just about 3-4% of Indian and foreign tourists. This is about 6 to 7 lakh foreigner and 3 crores Indian tourists annually.

Assuming 20% boom in tourists flow every year for the next 10 years with our strategies.

Tourists Net addition of tourists in 10 years (in crores)

Averagespending by each tourists (in Rs.)

Total cashsupply in the area(in Rs crore)

Foreigners 0.26 40,000 10,400

Indians 10.38 10,000 1,03,800

Total 10.64 1,14,200

Job Creation: Hotel staff (50,000), Driver (15,000), Tour operator (3,000), Guides

(2,000). Besides large job creation during basic infrastructure development for

this.

Present Status: 268 MW gas based, 1000 MW hydro electric.

We propose following power plants

Type Generation (MW)

units Comments

Thermal 11000 7*(2*500)+5*800 7 locations of 1000MW (2*500) in each state. A UMPP (Ultra Mega Power Project) of 4000MW (5*800). Coal from Indian mainland or imported coal from Indonesia through Chittagong ports.

Nuclear 2000 2*1000 Meghalaya has possible N-uranium sources.

Hydel 12000 120*100 Has a potential of 60,000 MW. 20% be tapped throughsmall plants at state level with installed capacity less than 100MW per plant to reduce environmental damage

Solar & wind 6000 600*10 Has a potential of 30,000 MW. 20% be tapped throughsmall hybrid solar and wind plants at state level with installed capacity less than 10MW per plant.

Total generation 41000 This effort will make this zone power surplus. Power demand will rise exponentially with growing tourism and infrastructure . Abundant water supply and low population density with wide hydel power potential make this zone an ideal area for power generation. Trade through sea port will further boost such things. The surplus power generated can be sold to the neighborhood states and even to other countries.

Power Generation

New Universities: Cost Analysis

Education

Healthcare

The average literacy rate of all the states is around 80% which is higher than national average of 74.4%. The place suffers from high drop out rate despite having decent literacy due to lack of good institutes in their vicinity. Lack of proper connectivity may be a possible reason for poor dropout rate. The students are compelled to leave for bigger cities like Bengaluru , New Delhi, Kolkata to have decent higher education. Lack of proper job Opportunities further exacerbates the situation. Hence we suggest opening of new universities which would impart vocational training with theoretical

knowledge and job oriented courses. Local industries and opportunities have been taken into account.

Agriculture specific (food processing, horticulture, sericulture, tea) Textile (Handloom, Local handicrafts, bamboo) Pharmaceuticals and medical colleges Knowledge based (IT, BPO, Software)Mining

Average cost of establishing a college (infrastructure) = Rs100 Cr. Total Cost = Rs 2500 Cr

Effort will be taken to promote such industries on small and medium scale in the localized area which will absorb these graduates. Colleges will be decentralized with specific courses. 12 to 15 such colleges with 10 to 12 traditional colleges (B.A., B. Com., B.Sc., Engg.) needed to Be established immediately to fill void of higher education. These will promote local industry which will boost local economy.

The area seriously lacks good hospitals as well as primary health centers. A world class hospital will be developed in all states. Also 2-3 primary Health centers with basic amenities will be opened in each districts. All tourist spots will have one health center each to cater the demand of tourists.

Present Status:•Presently contributes 26.2% of NE GDP•Fisheries and forestry adding another 3.6%.•Major agricultural products. -Rice, tea, fruits, silk etc•Average productivity lower than national average

Reasons:•Poor irrigation facilities•Lack of advanced technologies and agricultural practices.•Rugged topography is an inhibitor. •Lack of proper market and connectivity to trade goods.

Present Status•Contribution to GDP - 16.9% (National average -23.2%)•Absence of any major industrial units except few oil refineries.•Poor condition of Small and Medium Enterprises (SMEs)

Reasons for poor state:•Security concerns. No atmosphere of peace.•Lack of proper connectivity is the major inhibitor.•Poor response of government and lack of enthusiasm among private entities.•Absence of major raw material goods.

Agricultural and Industries

Construct small check dams at specific location to promote irrigation. Vast canal irrigation network can be extended in planar region of Assam. This will also mitigate annual floods. Constructing proper cold storage facilities to enhance trade. Employing trained agricultural local graduates to enhance productivity. Providing new technology and high yielding varieties seed at subsidized prices in

initial years. Promoting localized special products like tea, rubber, fruits, flowers. Special focus on promoting horticulture, piiculture, sericulture with trade oriented

approach. Developed connectivity will be a major boon to the farmers.

Enhancing private and public transport for easy flow of raw materials and labors. Promote small and medium enterprises and cottage industries in localized sector. Credit facilities and microfinance can be taken help. Sectors like handicraft, bamboo industries, wooden carving products needs to be

developed. Specialized food processing industries catering to the local demands Developing large scale power generation units to curb power shortage. Promoting textile and cement industries, which can be easily exported to nearby

nations which have large demands. Special industrial zones can be created with a purely trade oriented motive. Eg Tata

Nano plants for export to Bangladesh. Developing knowledge based industries like IT, BPO utilising the local work force

StrategiesStrategies

Agriculture and Irrigation Industry

Under India's look east policy the North East appears to be a crucial part for India’s diplomatic ties with the South east Asian Nations. Free trade corridors has to be established with Bhutan, Bangladesh, Myanmar.• Extensive road and rail networks with these nations has to be operative.• Being strategically important area it is crucial to have better trade relations with South-EastAsia. Free flow of goods and services to be alowed from these nations to the north east whichcan help whole India.•Developing extended railways and roadways will surely boost local and international trade.•Extensive focus can be there on establishing quality tea processing industries.

Strategies to promote Trade:

•Promoting export oriented industries like textle, cement etc which can be directlyexported to the bordering nations.•Promoting cold storage and transportation for cash intensive crops like fruits, orchidswhich can be traded with rest of India and bordering nations.•Establishing trade centers all over India and other nations which promote localhandicrafts and wooden products.•Sea port at Chittagong can be used to directly connect North east with Coramandalcoast etc.•Guwahati can be developed as the regional mega hub for trade, commerce andindustries.•Cooperative banks can be set up to provide easy credit facilities to the small traders andentrepreneurs.

Trade and Commerce

Challenges Involved:• Large initial investment required on the behalf of the government.•Infrastructural development in the region is difficult and requires high technological skills since the topography and terrain of the region is not smooth.•Mining and power projects may cause environmental degradation which may later be detrimental for local population. Some projects may cause rehabilitation of people.•There may be low rate of return in the initial years but the government has to keep patience.

Agricultural and Industries

NEDC • To propose recommendation to the Union government about any development proposal• To see to financial, technical, social, environmental impact and feasibility of the proposal• Centralized authority for single window clearance• Auditing and checking the progress of the accepted proposal in every three months• Reporting any delay and penalizing the respected authorities• Hear to the grievances of any concerned authority and provide solution

Union Govt. • To see to recommended proposal of NEDC and take appropriate action within a month (proposal can be amended or rejected in extreme situations

• To allocate funds to the concerned states and authorities• To diplomatic talks with the border nation concerning their involvement• To judiciously solve inter-state disputes• To implement projects under Union and concurrent list

State Govt. • To implement projects under State and concurrent list• To involve local administration and Govt. in the schemes• To solve minor issues or grievances of the people

Local Administration • To see that the project is being carried out effectively without delay• To arrange for local labors and machinery for the project

Private entities • To effectively implement the projects assigned to them through BOT, BLT• To arrange for all the infrastructures machinery for the same

This huge scheme will require effective coordinated effort of central, state, local government with private entities. We propose an apex centralized body called North-East Development Council (NEDC) which will be the epicenter of whole project. It will be a 22 member committee directly

under the P.M. Its members consist of CM of each state., One member each from union, finance, environment, industry, agriculture, North-East development and Railway ministry. It will also have the retired supreme court judge, NAC member, respected economist, renowned technical expert, environmentalist, two eminent personality from North-East.

Implementation mechanism : Responsibility and accountability

Responsibility and duty of each hierarchical level is described:

Economic Impact•Inflow of Rs 10,000 Cr annually through tourism alone.•Revenue generation of Rs 30,000 Cr through enhanced industry, agriculture, education,healthcare etc.•Massive boost in infrastructure and connectivity,•Permanent Employment generation within next 7 yrs•Tourism 68,000 (Hotels related service -50,000, Drivers -15,000, Tour operator -3,000,Guides-2,000•Industry 60,000 (Knowledge based -5,000, Cottage Industries Handicrafts -10,000, Powergeneration -20,000, Textiles 5,000, mining-10.000 others-10,000)•Connectivity-20,000 (railways -10,000, roads-5,000, Others-5,000)•Education and Healthcare 10,000 (5,000 each)•Temporary Job creation: 2-3 lac mainly unskilled labors for the next 5-10 years.•This will be mainly in the construction of railways, roads, hotels, industries etc.

Social Impacts •Reduction in crime rates due to higher standards of living.•Better education for newer generation.•Better access to healthcare .•Reduction in mass migration of semi-skilled and unskilled labors to other parts of India due to massive employment generation.•Inflow of skilled labors from other parts of the country will make this area more cosmopolitan.•Better connectivity for locals to other parts which will increase the much needed interaction.•Improved tourism spots at nearby places for the locals.

Environmental Impact•Massive thermal plants will raise the issue of fly-ash deposition and air pollution.•Hydro plants and check dams may interfere with the natural flow of rivers and increased chances of seismic activity.•Increased tourist activity will increase per capita energy consumption and waste generation.

Overall Impact

Mitigation efforts•Design of hotels etc based on zero-emission models.•Use of land filling for fly ash disposal.•Construction of check dams after effective technical and environmental regulation.•Mandatory construction of solid and liquid waste management systems.

Vision 2020 NER Council 2008 Development of Railway in Northeast 2009 Ministry of Development of North-eastern Region Federation of Industry & Commerce of the North-Eastern Region

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