NAGALAND - IBEF Nagaland –State profile •Covering an area of 16,579 sq km, Nagaland borders the...

NAGALANDNovember 2010

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Investment climate of a state

• Skilled and cost-effective labour

• Labour market flexibility

• Labour relations

• Availability of raw materials and natural

resources

• Tax incentives and exemptions

• Investment subsidies and other incentives

• Availability of finance at cost-effective terms

• Incentives for foreign direct investment (FDI)

• Profitability of the industry

• Procedures for entry and exit of firms

• Industrial regulation, labour regulation, other

government regulations

• Certainty about rules and regulations

• Security, law and order situation

• Condition of physical infrastructure such as

power, water, roads, etc.

• Information infrastructure such as telecom, IT,

etc.

• Social infrastructure such as educational and

medical facilities

Resources/Inputs

Incentives to industryPhysical and social

infrastructure

Regulatory framework

Investment climate of a state is determined by a mix of factors

NAGALAND November 2010

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Contents

Advantage Nagaland

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Nagaland


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Nagaland – State profile

• Covering an area of 16,579 sq km, Nagaland borders the Northeastern states of Assam, Arunachal Pradesh, Manipur, and Myanmar.

• Kohima is the state capital. Dimapur, Mokokchung, Tuensang, Wokha, Mon and Zunheboto are the other key cities in the state. Nagaland has 11 administrative districts.

• Nagaland has four rivers flowing through it, the Doyang and the Dhipu in the North, the Barak in the Southwest and the Chindwin in the Southeast.

• Nagaland has four soil types - inceptisols (66 per cent), ultisols (23.8 per cent), entisols (7.3 per cent) and alfisols (2.9 per cent); the major crops are paddy, maize, sugarcane, potato and tea.

• English is the official language and the medium of education. Sixty different dialects of Sino-Tibetian language are spoken in the state.

Nagaland November 2010

ADVANTAGE NAGALAND

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Institutional support

Policy and fiscal incentives

The state provides institutional support through various central and state

government agencies viz., North East Council, Ministry of Development of

North Eastern Region and Nagaland Industrial Development Council.

The state offers excellent policy and fiscal incentives for agro- and forest-

based industries, horticulture, food processing, mining, tourism and the

handlooms and handicrafts sector.

Availability of skilled labour

Nagaland has a high literacy rate of 67.1 per cent. More than 80 per cent

of the population speaks English, which is the official language of the state.

The state has strong focus on technical and medical education.

Advantage Nagaland … (1/2)

ADVANTAGE NAGALAND


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Conducive agro-climatic conditions

Nagaland’s agro-climatic conditions favour agriculture, horticulture

and forestry, offering immense potential in these areas.

Abundant natural resources

The state has considerable resources of natural minerals,

petroleum and hydropower.

Facilitating infrastructure

Advantage Nagaland … (2/2)

Transport and communication connectivity is good. Industrial

centres and special economic zones (SEZ) are being developed to

enhance the marketability of products.

ADVANTAGE NAGALAND


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Parameter Nagaland All-states Source

Economy

GSDP as a percentage of all states’

GSDP0.2 100.0 CMIE, as of 2006-07, current prices

Average GSDP growth rate (%)* 9.9 11.4 CMIE, 2000-01 to 2006-07, current prices

Per capita GSDP (US$) 542.6 835.8 CMIE, as of 2006-07, current prices

Physical infrastructure

Installed power capacity (MW) 103.2 159,398.5 Central Electricity Authority, as of March 2010

GSM cellular subscribers (No) 5,519,150^ 456,586,162Cellular Operators Association of India, as of June

2010

Broadband subscribers (No) 14,202# 4,981,976 As of October 2008

National highway length (km) 494 70,548Ministry of Road Transport & Highways, Annual

Report 2008-09

Airports (No) 1 133 Industry sources

Nagaland in figures … (1/2)

ADVANTAGE NAGALAND

* In terms of Indian rupee.

^ Figures for the Northeastern region comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

# Figures for the Northeastern region comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.


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Parameter Nagaland All-states Source

Social indicators

Literacy rate (%) 67.1 64.8 Nagaland State Human Development Report, 2004

Birth rate (per 1,000 population) 17.5 22.8Ministry of Health & Family Welfare, RHS Bulletin,

March 2008

Ease of doing business

Outstanding investments (US$ billion) 0.66 1,972.6 CMIE, as of March 2010

Nagaland in figures … (2/2)

ADVANTAGE NAGALAND


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Key industries in Nagaland with policy thrust and factor

advantages

Medium High

Low

Medium

High

Industry attractiveness matrix

SericultureHandloom

Food processing

TourismIT

*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital

Bamboo

Agriculture and

Horticulture

HydroMinerals

ADVANTAGE NAGALAND

Factor advantage

Polic

y th

rust


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Contents

Advantage Nagaland







11

Socio-economic snapshot of Nagaland

Parameters Nagaland

Capital Kohima

Geographical area (sq km) 16,579

Administrative districts (No) 11

Population density (persons per sq km) 120

Total population (million) 1.99

Male population (million) 1.04

Female population (million) 0.95

Population growth rate 1991-2001 (%) 64.4

Sex ratio (females per 1,000 males) 909

Literacy rate (%) 67.1

Male (%) 71.7

Female (%) 61.9

Average life expectancy (years) 73.4*

Source: Government of Nagaland. Nagaland State Human Development Report, 2004

As of 2001

*As of 2002

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


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Nagaland’s GSDP

Nagaland’s GSDP (US$ million)

Source: CMIE

• At current prices, the Gross State Domestic Product (GSDP) of Nagaland was about US$ 1.42 billion in 2006-07.

• Nagaland’s GSDP grew at a compound annual growth rate (CAGR) of 13.1 per cent between 1999-2000 and 2006-07.


601.3703.8

827.6

979.6

1,101.2 1,136.91,220.1

1,423.4

0.0

250.0

500.0

750.0

1,000.0

1,250.0

1,500.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

CAGR

13.1%


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Nagaland’s NSDP

Nagaland’s NSDP (US$ million)

• At current prices, the Net State Domestic Product (NSDP) of Nagaland was about US$ 1.3 billion in 2006-07.

• Nagaland’s NSDP grew at a CAGR of 12.8 per cent between 1999-2000 and 2006-07.

• This growth has been driven by the industry sector including construction, manufacturing, electricity, gas and water supply.

Source: CMIE


560.0654.2

770.2

914.91,023.8 1,057.4

1,123.1

1,304.8

0.0

250.0

500.0

750.0

1,000.0

1,250.0

1,500.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

CAGR

12.8%


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Nagaland’s economic performance is driven by the tertiary and

primary sectors

CAGR

• The secondary sector has been the fastest growing, at a CAGR of 17 per cent from 1999-2000 to 2006-07. It was driven by construction, manufacturing, electricity, gas and water supply.

• The primary sector has been steadily growing at a CAGR of 15.1 per cent over the period from1999-2000 to 2006-07.

• The tertiary sector grew at a CAGR of 11 per cent from 1999-2000 to 2006-07, driven by trade, real estate, transport and telecommunications.

• The tertiary sector is the largest contributor to Nagaland’s economy (51.4 per cent in 2006-07), followed by the primary sector (31.7 per cent).

Source: CMIE

Percentage distribution of GSDP


28.1 31.7

13.316.9

58.6 51.4

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

1999-00 2006-07

Primary Sector Secondary Sector Tertiary Sector

15.1%

17.0%

11.0%


15

325.0362.0

404.7

455.8487.5 478.9 489.0

542.6

0.0

200.0

400.0

600.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Per capita GSDP

• The state’s per capita GSDP in 2006-07 was US$ 542.6.

• Per capita GSDP increased at a CAGR of 7.6 per cent between 1999-2000 and 2006-07.

• Trade, transportation, communication, agriculture and allied sectors have been the key drivers of the growth in per capita GSDP.

Source: CMIE

Per capita GSDP


US$


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Key industries in Nagaland

• The natural resources, climatic conditions and policy incentives in Nagaland support investments in industries related to bamboo, horticulture, sericulture, tourism and agro-processing.

• Other promising sectors in the state include paper and pulp processing, minerals and mining, and petrochemicals.

• Nagaland Industrial Development Corporation (NIDC) is responsible for the development of industrial infrastructure in the state.

• An export promotion investment park is located in Dimapur, focussing on agro and food processing, bamboo shoot processing, cement and steel processing.

Key industries in Nagaland

Bamboo

Agriculture and allied industries

Horticulture

Sericulture

Minerals and mining

Handloom and handicrafts

Tourism



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Maize, sugar, paddy, potato, pineapple and ginger are the key

agricultural products

• Agriculture is a key contributor to Nagaland’s economy. Around 70 per cent of the population is engaged in agriculture sector, which contributed around 27.9 per cent to the GSDP of Nagaland in 2006-07.

• In 2006-07, the state registered a 7.9 per cent annual growth in agricultural income.

• Maize, sugar, paddy, potato, pineapple and ginger are the key agricultural products of Nagaland.

• Horticultural produce, agro-processing produce and bamboo have high export potential. Bamboo cultivation is now being commercialised.

• Nagaland Food Private Limited has been established in Dimapur industrial estate, which specialises in bamboo shoot processing, pineapple, passion fruit and orange juice processing.

Source: Maps of India


Crop Annual production (MT)

Maize 115,330Sugar 220,320Paddy^ 311,300Potato 35,850Soy bean 31,270Pineapple 57,500Colocasia 18,270Rapeseed and mustard 19,270Orange 28,000Ginger 28,760

Source: North Eastern Development Finance Corporation

Limited, (NeDFI) databank

^Including Jhum Paddy

As of 2007-08


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39.9%

57.9%

2.2%

Electricity

Services^

Mining

• According to the Reserve Bank of India (RBI), FDI inflows from April 2000 to May 2010 amounted to US$ 64 million*.

• As of March 2010, of the total outstanding investments of US$ 664.9 million, services (excluding financial services) accounted for 57.9 per cent followed by energy sector (around 39.9 per cent).

*FDI inflows for RBI’s Guwahati region, which comprises Assam,

Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and

Tripura.

Investments and FDI inflows

Break up of investments by sector

^Excluding financial services

Source: CMIE, as of March 2010



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Contents

Advantage Nagaland







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Roads, railways and airports

• Nagaland has 494 km of National Highways and around 1,032.5 km of State Highways. The state has road density of 80 km per 100 sq km.

• The state is well connected with Assam, Nagaland and Manipur through National Highway (NH)-61, NH-39, NH-36, NH-150 and NH-155.

• Agencies maintaining roads in the state include the Public Works Department (PWD) and Pushpak (a Border Roads Organisation of the Government of India).

• Nagaland State Transport provides road transport across Nagaland, covering 112 routes and 21,300 km, daily.

• The railway station at Dimapur connects Nagaland to rest of the country via Assam.

• Nagaland has one operational airport at Dimapur. A second airport is being planned for Kohima.

Road type Road length (km)

National Highways 494^

State Highways 1,032.5

District, town and village roads 10,440.4

Border roads 1,429

Sources: Ministry of Road Transport & Highways, NeDFI databank

As of 2003-04

^As of 2008-09

Airport, Dimapur Railway station, Dimapur

INFRASTRUCTURE STATUS


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120.0

102.7 102.7 102.7 103.2

0.0

50.0

100.0

150.0

2005-06 2006-07 2007-08 2008-09 2009-10

• As of March 2010, Nagaland had a total installed power generation capacity of 103.2 MW –owned by the state and central sectors.

• The capacity comprised about 21.2 MW of thermal power plants and 53.3 MW of hydroelectric power plants. Further, there is installed capacity of 28.7 MW power from renewable sources.

• The per capita power consumption was 108 kWh in 2007-08.

Installed power capacity (MW)

Source: Central Electricity Authority

Power


MW


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Telecom

• As of August, 2010, Nagaland has 62 telephone exchanges and 45,582 wire line connections. The service is provided through the Northeast-II circle of Bharat Sanchar Nigam Limited (BSNL).

• As of August, 2010, total mobile phone connections provided by BSNL was 250,364.

• Broadband service in the state is provided by Sify, BSNL, Reliance, Tata Indicom and Airtel. As of August 2010, there were 4,788 connections provided by BSNL.

• Department of telecom is implementing the scheme for augmentation, creation and management of infra-district SDHQ-DHQ OFC^ network in the state.

• There are 328 post offices in the state apart from private parcel and postal services.

Telecom operators in Nagaland

• BSNL

• Bharti Airtel

• Aircel Limited

• Vodafone

• Reliance Communications

• Tata Indicom

Source: NeDFI databank


^SDHQ: Sub-division headquarter, DHQ: District

headquarter, OFC: Optical-fibre cable

Particular Value

Telephone exchanges 62

Wire line connections 45,582

CDMA connections 29,170

GSM connections 221,194

Tele-density (percentage) 14.9

Broadband connections 4,788

Source: Bharat Sanchar Nigam Limited

As of August 2010.

All data for BSNL only.


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Urban infrastructure

• About 35 per cent of the cities in the state are covered by municipal water supply. Protected water supply is available in 1,304 out of 1,376 villages.

• Solid waste segregation and disposal is diligently being adhered to across the state.

• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), US$ 17.2 million has been allocated for road transport development in Kohima.

• The city development plan of Kohima city has been approved by the Central Government and development works are underway at a cost of US$ 421.5 million.

• Under the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) and Integrated Housing and Slum Development Programme (IHSDP) of the Government of India, infrastructure development plans are being developed for all district headquarters.

• Infrastructure development of Kohima town is underway with a funding of US$ 63.1 million from the Asian Development Bank. It is to be implemented during the period 2008-2017 and will cover projects such as water supply, sewerage, solid waste management, drainage and landslip protection, transportation, slum and community up-gradation.

• US$ 2.1 million has been earmarked for the development of 71 towns under the “Development of Small and Medium Towns” programme of the Government of India.



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Educational infrastructure (2008)

University 1

Secular colleges (affiliated to

NGU)37

Theological colleges (government

recognised)24

Polytechnics and ITI training

institutes3

Higher secondary schools^ 64

High schools^ 350

Middle schools^ 488

Primary schools^ 1,518

Education sector

• As per Census 2001, Nagaland has a literacy rate of 67.1 per cent.The male literacy rate is 71.1 per cent and female literacy rate stands at 61.9 per cent.

• The Nagaland University (NGU) offers bachelors, masters and doctoral degrees in science, humanities, education, social science, technology and management.

• Directorate of Technical Education was established in July 2009 to focus on technical education. It has approved 117 seats for medical and 185 seats for engineering courses in the state.

• Major activities of the Department of Higher Education include awarding scholarships, construction of academic and other buildings, employing quality manpower and providing them regular training.

• Budget of the department for 2008-09 was US$ 8.4 million.

• In 2008-09, 38,948 scholarships worth US$ 4 million were awarded to deserving candidates.

ITI: Industrial training institutes

Sources: Website of Government of Nagaland, NeDFI

databank

^As of 2006



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Health infrastructure

• As of 2008, the state has 11 district hospitals, 86 primary health centres, 397 sub-centres and 21 community health centres.

• As of 2007, the state had total 2,541 beds, 399 doctors, 449 pharmacists and 1,499 nurses.

• Nagaland has a high life expectancy at birth, of 73.4 years as compared to the national average of 60.7 years, indicating a better quality of life and good availability of medical services.

• Community participation in healthcare services has led to better maintenance and up-gradation of medical infrastructure in the state.

Sources: Ministry of Health and Family Welfare, NeDFI

databank

^As of 2007

Health indicators

Number of beds in the medical facilities^ 2,541

Birth rate (per 1,000 persons) 17.5

Death rate (per 1,000 persons) 4.6

Infant mortality rate (per 1,000 live births) 26

Health infrastructure (2008)

• 397 sub-centres

• 86 primary health centres

• 21 community health centres

• 11 district hospitals

• Number of doctors: 399^

• Number of pharmacists: 449^

• Number of nurses: 1,499^

Sources: RHS Bulletin, March 2008, Ministry of Health &

Family Welfare, Nagaland HRD Report 2004

^As of 2007



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Cultural infrastructure• Nagaland is home to 16 different tribes. Each tribe

has its own weaving technique, unique designs, colours, costumes and accessories.

• The tribal and war dances of the Nagamese people are unique to each clan and form an important part of their culture.

• The customs and traditions of Nagamese are intertwined with their agricultural cycle and festivals.

• The annual Hornbill festival is a festive showcase of the rich culture and tradition and is celebrated for a period of seven days in the first week of December.

• The other festivals include Sekreyenki, Moatsu, Sukhrunhye Tsunkhenye, Nankyulem, Tsokum, Mimkut, Bushu, etc.

• Tourist locations in Nagaland include, Tizit, Chmukedima, Piphema, Zanibu lake, Shill lake, Wokha and Sadde.

Source: Maps of India



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Industrial infrastructure … (1/2)

• Nagaland Industrial Development Corporation (NIDC) is responsible for the development of industrial infrastructure in the state, with eight district industrial centres as its branches.

• Promoted by NIDC, the export promotion industrial park (EPIP) at Dimapur has received formal approval as a special economic zone (SEZ) for agro and food processing.

• A proposed multi-product SEZ spread across 400 acres in Dimapur has received formal approval.

• An industrial growth centre (IGC) has been developed in Dimapur on 170 acre of land which has 23 industrial sheds, one office building and other supporting infrastructure such as water supply system, bank, post office, police station.

Industrial infrastructure

• 697 registered industrial units

• One Nagaland mini tool-room and training centre

• Border trading centre with Myanmar

• Exhibition facilities for national and international

fairs on handloom products

• Infrastructural development schemes for districts

in the “no industry” category

Source: Annual Report, 2007-08, Department of Industries



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Industrial infrastructure … (2/2)

• Kiruphema in Kohima has been identified for development as an integrated infrastructure development centre (IIDC). The Longnak valley in the Mokochung district is being considered for similar development.

• Urban haats are being set up in Dimapur and IIDC (Kiruphema), which will provide market outlets for various trades.

• The state has collaborated with the National Institute of Fashion Technology (NIFT) to patent and promote the handloom and handicrafts of Nagaland.

• A mini tool-room and training centre has been set up at Dimapur with an investment of US$ 3.2 million.



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Major investments in the infrastructure sector

SectorInvestment

(US$ million)

Manufacturing 137.3

Mining 17.4

Electricity 286.4

Services 10.9

Total 452.0

• As of December 2008, over US$ 452 million of investments had been made towards ramping up Nagaland's infrastructure.

• Over 80 per cent of investments in infrastructure have been made in the manufacturing and power sectors.

• The Ministry of Development of North Eastern Region (MDoNER) has approved US$ 215 million of investments in March 2009 for the development of power, roads, irrigation, education, water supply and health infrastructures.

Source: CMIE, as of December 2008



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Contents

Advantage Nagaland







31

Sector-specific policies … (1/6)

North East Industrial and Investment Promotion Policy (NEIIPP), 2007

Aim: To promote the Northeastern region as an attractive investment destination through concessions and incentives.

Key features:

• Industries, under this policy, are eligible for incentives for a period of 10 years from the date of commencement of commercial

production.

• All new units and existing units that undergo substantial expansion (minimum 25 per cent increase in fixed capital) and start

production before 2017, would qualify for incentives.

• Incentives would be available for all existing industrial units and upcoming units anywhere in the region.

• High level monitoring committee/advisor committee would oversee the implementation of the NEIIPP.

• NEIIPP would not be applicable for peripheral activities like preservation while storage, cleaning, packing, re-packing, labelling or

re-labelling, sorting, etc.

• North Eastern Development Finance Corporation (NeDFI) will act as the nodal agency for disbursal of subsidies

• NEIIPP, 2007, replaced the North East Industrial Policy 1997.

STATE POLICIES AND INCENTIVES


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NEIIPP, 2007 (continued)

Incentives and concessions:

• 100 per cent excise duty exemption on finished products made in the region.

• 100 per cent income tax exemption for industrial units.

• Capital investment subsidy increased from 15 to 30 per cent for plant and machinery up to US$ 360,000 per unit.

• For units with investment beyond US$ 360,000 and up to US$ 7.5 million, an empowered committee approves. For units above

US$7.5 million, the Union Cabinet approves.

• Interest subsidy to be given at the rate of 3 per cent on working capital.

• 100 per cent reimbursement of insurance premium.




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Nagaland Bamboo Policy, 2005

Aim: To promote bamboo cultivation and bamboo-based industries in Nagaland

Key initiatives:

• Bamboo to be developed as a resource by scientific analysis of agro-climatic conditions, topography, breed of plant, and other

aiding conditions.

• Natural bamboo forests to be developed by proper planting and maintenance of forest tracts.

• Community and private participation to be motivated and nurtured to develop bamboo plantations as 89 per cent of the total

geographic area is under private or community ownership.

• Infrastructure required for extraction of bamboo to be set up by the state in tie ups with various national and international

support programmes.

• Bamboo to be developed as an enterprise by promoting bamboo-based industries in food products, medicinal and chemical

products, handicraft and art products and value-added products like tiles, flooring etc.

• Provide training facility to entrepreneurs and investors in technology and management.

• Capacity building and awareness creation regarding bamboo and its industrial usage in schools, colleges and technical institutions

to be undertaken by the state.

• Nagaland Bamboo Resource Centre has been set up in Dimapur as a centre for excellence in bamboo technology and

management.




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IT Policy of Nagaland, 2004

Aim: To develop Nagaland as a preferred IT destination by creating an enabling environment

• All tax and other incentives will be provided to IT industries as prescribed in the New Industrial Policy, 2000.

• State-wide network with a control centre connecting all districts with electronic and video communications to be set up.

• Computer training to be imparted in school, vocational schools, and colleges.

• IT task force to be set up in each government department, which would continuously monitor and develop the infrastructure.

• Five-year plans to be developed to computerise the government departments.

• Geographic information system (GIS) to be implemented for development and management of state infrastructure.




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New Industrial Policy, 2000

Aim: To facilitate rapid and sustained industrial development of the state.

Key initiatives:

• Nagaland would develop infrastructure such as road, power, water and communication.

• NIDC would act as a channelling agency for obtaining credit for industrial development.

• District industrial centres (DIC) shall serve as principal contact and guiding agency for entrepreneurs and investors.

• Government will develop trade centres in Longwa, Pangsha, Mimi, Molhe and Avangkhu to promote border trade with Myanmar.

• Government would prioritise FDI in infrastructure development projects.

• Thrust areas under the policy include food processing, biotechnology, agro- and forest-based industries, floriculture, minerals,

electronics, IT, sericulture, petrochemicals, handlooms and handicrafts.




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New Industrial Policy, 2000 (continued)

Incentives and concessions:

• Capital investment subsidy at the rate of 15 per cent on plant and machinery, subject to a maximum of US$ 65,000.

• Transport subsidies:

• Transportation of raw material and finished products, to and from the nearest railhead up to Siliguri: 90 per cent

• Transportation of raw material and finished products within the Northeastern region: 50 per cent

• Transportation of electronic components and finished products by air: 75 per cent

• Interest subsidy of 3 per cent on working capital loans, for a period of 10 years.

• Excise duty exemption for 10 years from the date of commercial production.

• Income tax exemption for 10 years from the date of commercial production.

• Power subsidy of 30 per cent and 25 per cent for loads below 2 MW and above 2 MW, respectively.

• Cost of drawl of 33/11 kV line for eligible industrial units to be reimbursed, subject to a ceiling of US$ 4,350.

• Other incentives and subsidies include subsidy for feasibility study, manpower subsidy on employing locals, subsidy for quality

control measures, stamp duty exemption, stipend for employee development programme.




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Contents

Advantage Nagaland







38

Bamboo

• Nagaland’s bamboo growing stock, covering 448,000 ha of land and comprising 22 species, is about 5 per cent of the total stock in the country.

• Nagaland promotes bamboo processing as an enterprise, covering various applications such as food-based, medicinal usage, handicraft, art, tiles and flooring.

• Nagaland Bamboo Development Agency (NBDA) is the nodal office that coordinates with other offices for all bamboo-related research, development and business applications.

• NBDA set up Nagaland Bamboo Resource Centre (NBRC) at Dimapur as a centre of excellence with the following objectives:

• Function as information repository and facilitate technology and information transfer to enterprises.

• Create awareness on the potentials of bamboo.

• Support bamboo farmers and entrepreneurs in building capacity.

• In-house pilot bamboo processing units for training entrepreneurs.

• The state has technology tie ups with several national and international agencies in the area of bamboo research and application.

BUSINESS OPPORTUNITIES


39

Floriculture

• Nagaland has a rich wealth of flora and fauna. Favourable climatic and geographical conditions in the state offer tremendous scope for floriculture.

• Based on accessibility and agro-climatic conditions Kohima, Mokokchung, Wokha and Dimapur districts have commercial potential for floriculture.

• Several varieties of orchids are available in the state, offering significant investment potential.

• Exotic and hybrid varieties of flowers are also being developed in Nagaland; the state is also home to the tallest Rhododendron tree in the world.



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Agriculture, horticulture and food processing

• Nagaland has a suitable climate for agricultural and horticultural produce. It supports multiple crops viz., rice, maize, millet, gram, mustard, bean, sugarcane, rubber, tea, banana, pineapple, orange, jackfruit, pear, plum, passion fruit, litchi, mango, lemon, sweet lime, potato, sweet potato, tapioca, tomato, pea, chilly, ginger, garlic, cardamom, etc.

• Jhum cultivation (or shifting cultivation) is widely practised in Nagaland, however, crop yields are low under such cultivation. There is potential for increasing capacity utilisation by adopting modern techniques.

• The food and meat processing sector also provides immense potential for investment in Nagaland.

• Nagaland Industrial Development Corporation has received approval for developing a agro and food processing SEZ in Dimapur.

• NeDFI provides subsidy of upto 25 per cent of the project cost (for project cost upto US$ 52,740 for individuals and US$ 105,480 for partnerships and companies) and arranges for soft loan to promote enterprises in the agri-business sector.

• Krishi Vigyan Kendra (KVK) has been established in Dimapur by Indian Council of Agricultural Research (ICAR) in order to provide trainings to enhance skill sets of farmers, farm women, rural youth and school drop outs and to conduct field trials and front-line demonstrations.



41

Hydro power

• It is estimated that Nagaland has a potential for 1,000 MW of hydro power generation, while the installed capacity as on March 2010 is only 28.7 MW.

• This provides an immense potential; investments are being invited by the State Government in this area.

• Under Central Government’s initiative of installing 50,000 MW hydro power in India, Central Electricity Authority has prepared pre-feasibility report of three hydropower projects in Nagaland with total capacity of 330 MW.

• IL&FS Infrastructure Development Corporation has been mandated for setting up of two hydro power plants – Dikhu hydropower project (120 MW) and Dzuza hydropower project (8 MW).



42

Tourism sector

• Salubrious climate, green hills, criss-crossing rivers, interspersed lakes, vibrant culture, colourful handicrafts and weavings, and numerous festivals make Nagaland a tourist’s paradise.

• The number of tourists arrival in Nagaland increased by 12 per cent between 2005 and 2007.

• Creation of tourist complexes, eco-tourism, adventure tourism, ethnic culture tourism, health farms, hotels, convention centres, tourist travel services, etc., are various avenues for investment in the sector.

• Ministry of Tourism, Government of India has included 12 villages in Nagaland under rural tourism scheme in order to promote traditional rural art, craft, textile and culture.



43

IT sector

• Nagaland’s IT policy aims to increase the use of IT in the industrial and government sectors within10 years, starting 2004.

• With a high literacy rate, affordable cost, strong English-speaking population, improved telecommunications connectivity and favourable climate, Nagaland is well poised to serve the IT industry.

• In order to develop skilled manpower in IT, education and certifications from Department of Electronics Accreditation of Computer Courses (DOEACC), Indira Gandhi National Open University (IGNOU) are provided through community information centres (CSC).

• The IT policy also provides various incentives and concessions for investments in IT.



44

Sericulture industry

• The Department of Sericulture of Nagaland is mandated to popularise sericulture in rural areas, generate employment opportunities, introduce and impart latest technologies on sericulture, support marketing of sericulture products and promote exports of silk from Nagaland.

• To facilitate operations at the district-level, the department has set up district sericulture offices in all the 11 districts of the state.

• Agro-climatic condition in the state is conducive for development of sericulture. Mulberry, muga, eri, oak-tussar, and silk are widely cultivated in Nagaland.

• The state has invested US$ 7.31 million to promote cultivation of silk.



45

Handloom and handicrafts

• The varied ethnic handloom and crafts of Nagaland have a ready market in India and abroad.

• Bamboo crafts and handloom are being promoted as a part of the bamboo policy of the state.

• The state has a tie up with NIFT to promote and provide sustained market for ethnic handloom.

• With the modern weaving equipments being popularised in Nagaland, the handloom sector is poised for growth in production and trade.



46

Minerals and petrochemicals

• Nagaland has vast, untapped natural resource reserves of limestone and marble (1,000 million tonnes), petroleum and natural gas (600 million tonnes), coal (50 million tonnes) and substantial reserves of slate sandstones, basalt, chert, dunite, gabbro, granodiorite, serpentine spilite pyroxenite and quartzite.

• This presents a huge untapped potential in the minerals and petrochemicals industries.

• Explorations are being carried out by Geology & Mining Department, Geological Survey of India, Oil and Natural Gas Corporation Limited (ONGC), Atomic Minerals Division and Central Ground Water Board.



47

Medicinal plants

• Nagaland has rich flora and fauna, which support various medicinal plants.

• The state has identified specific medicinal plants, which could be cultivated and processed, viz., conitum ferox, ginseng, lemon grass, aconitum heterophyllum, aquilaria agallocha, artemiszia annua, dioscorea floribunda, gloriosa superba, hedychium spicatum, lycopodium clavatum, nardostachys jatamansi, panax-pseudoginseng, picrorhiza kurron, piper longum, piper nigrum, podophyllum hexunddrum, pogostemon cablin, smilax china, tagetes minuta, taxuz bacata and valeriana wallichii.



48

Contents

Advantage Nagaland







49

Key approvals required

List of approvals and clearances required Department

Incorporation of company Registrar of companies

Registration, Industrial Entrepreneurs Memorandum, industrial licensesIndustries & Commerce Department

Permission for land use

Allotment of land Nagaland Industrial Development Corporation Limited

Site environmental approval

Nagaland 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

Department of PowerPower feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearancePublic Health and Engineering Department

Water connection

DOING BUSINESS IN NAGALAND


50

Cost parameter Cost estimate Source

Cost of land (per acre) US$ 50,000 to US$ 75,000 per acre in

Kohima and DimapurIndustry sources

Hotel costs

(room per night)US$ 10 to US$ 35 State tourism website

Cost of office space

(2,000 sq ft)US$ 75 to US$ 200 per month Industry sources

Cost of residential space

(2,000 sq ft house)US$ 60 to US$100 per month Industry sources

Labour cost (minimum wages)Unskilled: US$ 2.0 per day

Skilled: US$ 2.5 per day

Labour and Employment Department,

Government of Nagaland

Cost of doing business in Nagaland



51

Contact list

Key agency Contact information

Ministry for Development of North Eastern Region

258, 1st Floor, Vigyan Bhavan Annexe, New Delhi- 110011

Phone: 91-11-2302 2400/01

Fax: 91-11-2306 2754

Website: mdoner.gov.in

Department of Industries & Commerce

Director of Industries & Commerce

Upper Chandmari,

Kohima-797001, Nagaland

Phone: 91-370-2245199

Fax: 91-370-2241294

E-mail: [email protected]

Nagaland Industrial Development Corporation

IDC House

Dimapur - 797 112, Nagaland

Email: [email protected]

Nagaland Handloom & Handicrafts Development

Corporation

P.B. No 81, Dimapur

Nagaland

Phone: 91-3862-224 591



mailto:[email protected]

52

Exchange rates

Year INR equivalent of one US$

2000 46.6

2001 48.3

2002 48.0

2003 45.6

2004 43.7

2005 45.2

2006 45.0

2007 42.0

2008 40.2

2009 46.0

2010 47.4

Annexure

Average rates for the year



53

India Brand Equity Foundation (“IBEF”) engaged

ICRA Management Consulting Services Limited (IMaCS)

to prepare this presentation and the same has been

prepared by IMaCS in consultation with IBEF.

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same may not be reproduced, wholly or in part in any

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medium by electronic means and whether or not

transiently or incidentally to some other use of this

presentation), modified or in any manner communicated

to any third party except with the written approval of

IBEF.

This presentation is for information purposes only. While

due care has been taken during the compilation of this

presentation to ensure that the information is accurate to

the best of IMaCS’s and IBEF’s knowledge and belief, the

content is not to be construed in any manner whatsoever

as a substitute for professional advice.

IMaCS and IBEF neither recommend nor endorse any

specific products or services that may have been

mentioned in this presentation and nor do they assume

any liability or responsibility for the outcome of decisions

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presentation.

Neither IMaCS nor IBEF shall be liable for any direct or

indirect damages that may arise due to any act or

omission on the part of the user due to any reliance

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NAGALAND - IBEF Nagaland –State profile •Covering an area of 16,579 sq km, Nagaland borders the...

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