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For updated information, please visit www.ibef.org November 2017

ARUNACHAL PRADESH

LAND OF THE RISING SUN

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Table of Content

Executive Summary……………….….…….3

Advantage India…………………..….……..4

Arunachal Pradesh – An Introduction……..5

Infrastructure Status……….…….…..…….14

Employment Opportunities…………...……27

Major Industries in Arunachal Pradesh......28

State Acts & Policies…….……….......……42

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For updated information, please visit www.ibef.org ARUNACHAL PRADESH 3

EXECUTIVE SUMMARY

India’s pent-up demand for electricity could be addressed by the state’s potential 60,000 MW hydropower

capacity. As of October 2017, the installed hydropower capacity in the state stood at 97.45 MW.

Largest hydropower

potential in India

Source: Ministry of Textile, Government of India, Central Electricity Authority, Arunachal Pradesh State Government, State Budget 2015-16

Total of 8 railway lines have been sanctioned by the ministry of railways connecting various cities of the state

which include Itakhola to Seijosa (18 km), Doomdooma-Namsai-Wakro (96 km), Dangri to Roing (60 km)

Naharkatia to Deomali (20 km), Lekhapani-Nampong-New Khamlang-Deben (75 km) and Tinsukia to

Pasighat via Kanubari (300 km).

Upcoming Railway

The state’s textile industry, including carpet making, enjoys a huge appeal. The state’s carpets have received

national & international fame for their creativity, design and quality. Carpet making

Arunachal Pradesh, with an area of 83,743 sq km, is the largest state in the Northeast of India. Its diverse

topography offers opportunities for non-timber based industries such as bamboo, cane and medicinal plants.

Largest state in

Northeast

For the development of infrastructure in Arunachal Pradesh & other North East States, Non-Lapsable Central

Pool of Resources (NLCPR) releases funds for various projects. In the NLCPR Annual Plan 2016-17, 24

projects in Arunachal Pradesh worth Rs 417.34 crore (US$ 64.78 million) were prioritised. During 2016-17, Rs

97.28 crore (US$ 15.09 million) was released for NLCPR projects in Arunachal Pradesh.

NLCPR Projects in

Arunachal Pradesh

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ADVANTAGE ARUNACHAL PRADESH

High Economic Growth

The GSDP increased at a compound annual growth rate

(CAGR) of 13.34% between 2005-06 and 2015-16. The

state has considerable mineral reserves that offer huge

potential.

Due to its topography, the state has varied agro-

climatic conditions suitable for horticulture of flowers

and aromatic and medicinal plants.

Huge Hydropower Potential

The hilly terrain & abundant rivers make the state a

potential powerhouse of the Northeast.

As of October 2017, Arunachal Pradesh had a total

installed power generation capacity of 277.96 MW.

Hydro energy (97.45 MW) accounted for around 35.1%

of this capacity.

The Department of Hydropower Development,

Arunachal Pradesh, is wholly entrusted with the design,

construction, operation & maintenance of hydropower

projects in the state.

International Trade Opportunities

The state’s location provides opportunities for

international trade with South Asian countries such as

Myanmar, Bhutan and China.

Textiles and handicrafts from the state are in demand

in neighbouring countries.

As of March 2015, value exports of all commodities

from the state were valued at US$ 6.48 million.

Policy and Fiscal Incentives

The state and central governments offer huge fiscal &

policy incentives for the development of important

sectors.

In Facilitate & promote growth of the industry,

employment & investment in the state has introduced

State Industrial Policy 2008.

October

2017

Hydropower

generation

installed

capacity:

97.45 MW

Pipeline

100+

projects

having a

generation

capacity of

47,000 MW

for next ten

years

Advantage

Arunachal

Pradesh

Source: Central Electricity Authority, Arunachal Pradesh State Government, CSO

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ARUNACHAL PRADESH FACT FILE

Source: Government of Arunachal Pradesh website, Ministry of Development of North Eastern Region, Census 2011

Parameters Arunachal Pradesh

Capital Itanagar

Geographical area (sq km) 83,743

Administrative districts (No) 17

Population density (persons per sq km) 17

Total population (million) 1.47

Male population (million) 0.71

Female population (million) 0.67

Sex ratio (females per 1,000 males) 938

Literacy rate (per cent) 65.38

Located in the Northeast of India, Arunachal Pradesh is the largest of

the 7 sister states. It shares borders with the neighbouring countries

of Bhutan in the west, China (Tibet) in the north & northeast &

Myanmar in the east and southeast. The Indian states of Assam &

Nagaland border it in the south.

The most commonly spoken languages are Assamese, Bengali &

Hindi. English is the official language & primary medium of education

in schools.

Itanagar, Naharlagun, Tawang, Rupa, Bomdila, Bhalukpong, Seppa,

Ziro & Daporijo are some of the major towns in the state.

The land is mostly mountainous with the Himalayan ranges running

north-south. The state is divided into 5 river valleys: the Kameng,

the Subansiri, the Siang, the Lohit & the Tirap.

Source: Maps of India

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ARUNACHAL PRADESH IN FIGURES … (1/2)

Parameter Arunachal Pradesh All states Source

Economy 2015-16 2015-16

GSDP as a percentage of all states’ GSDP 0.14 100.0 Directorate of Economics & Statistics of Arunachal

Pradesh, Central Statistics Office

GSDP growth rate (%) 12.07 11.70 Directorate of Economics & Statistics of Arunachal

Pradesh, Central Statistics Office

Per capita GSDP (US$) 2,025.64 1,546 Directorate of Economics & Statistics of Arunachal

Pradesh, Central Statistics Office

Physical Infrastructure 2016-17 2016-17

Installed power capacity (MW) 277.96 331,117.58 Central Electricity Authority, as of October 2017

Wireless + Wireline subscribers (in

million)1 13.02 1,206.71

Telecom Regulatory Authority of India, as of

September 2017

Internet subscribers (in million)1 6.3 430.34 Telecom Regulatory Authority of India, as of June

2017

National Highway length (km) 2,513.05 100,087.08 NHAI & Road & Building Department

Airports (no) 32

125 Airports Authority of India

1 Combined figures for the Northeast states comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura, 2 Non-operational

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ARUNACHAL PRADESH IN FIGURES … (2/2)

Parameter Arunachal Pradesh All states Source

Social Indicators

Literacy rate (%) 65.38 73.0 Census 2011

Birth rate (per 1,000 population) 18.9 20.4 SRS Bulletin, September 2017

Investments

FDI equity inflows (US$ billion) 0.11

357.47 Department of Industrial Policy & Promotion, From

April 2000 to September 2017

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

Registration System

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For updated information, please visit www.ibef.org ARUNACHAL PRADESH 8

ECONOMIC SNAPSHOT – GSDP

GSDP of Arunachal Pradesh at current prices (in US$ million) Per capita GSDP (in US$)

At current prices, the gross state domestic product (GSDP)* of

Arunachal Pradesh was US$ 2.98 billion in 2015-16.

Arunachal Pradesh’s GSDP increased at a CAGR of 13.34% from

2005-06 to 2015-16. .

In 2015-16, the state’s per capita GSDP^ at current prices was

US$ 2,153 as compared to US$ 697 in 2005-06.

The per capita GSDP increased at a CAGR of 11.94% between

2005-06 and 2015-16.

Source: Directorate of Economics & Statistics of Arunachal Pradesh, Central Statistics Office GSDP* - Central Statistical Organisation Per Capita GSDP^ - calculated using GSDP million

USD / Population in million

69

7

72

8 93

4

94

2

1,1

77

1,4

42

1,5

81

1,5

16

1,5

23

1,7

51

2,1

53

0

500

1000

1500

2000

2500

200

5-0

6

200

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7

200

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8

200

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200

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201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

CAGR 13.34% CAGR 11.94%

85

1

91

0

1,1

94

1,2

33

1,5

76

1,9

77

2,2

18

2,1

76

2,2

38

2,5

72

2,9

78

0

500

1000

1500

2000

2500

3000

3500

200

5-0

6

200

6-0

7

200

7-0

8

200

8-0

9

200

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201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

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ECONOMIC SNAPSHOT – NSDP

NSDP of Arunachal Pradesh at current prices (in US$ million) Per capita NSDP (in US$)

At current prices, the net state domestic product (NSDP)# of

Arunachal Pradesh was US$ 2.71 billion in 2015-16.

Arunachal Pradesh’s NSDP at current prices grew at a CAGR of

12.52% between 2005-06 and 2015-16.

The state’s per capita NSDP^ in 2015-16 was US$ 1,846.06 as

compared to US$ 638 in 2005-06.

The per capita NSDP increased at an average rate of 11.21%

between 2005-06 and 2015-16.

Source: Directorate of Economics & Statistics of Arunachal Pradesh, Central Statistics Office NSDP# - calculated using per capita NSDP x Population in million Per Capita NSDP^ -

Economic and Statistical Organisation, Punjab (ESOPB)

83

4

83

4

1,0

94

1,1

27

1,1

42

1,8

31

2,0

55

2,0

15

2,0

68

2,0

73

2,7

14

0

500

1000

1500

2000

2500

3000

200

5-0

6

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

63

8

66

7 85

6

86

1

1,0

77

1,3

35

1,4

65

1,4

04

1,4

08

1,4

11

1,8

46

0

200

400

600

800

1000

1200

1400

1600

1800

2000

200

5-0

6

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

CAGR 12.52% CAGR 11.21%

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For updated information, please visit www.ibef.org ARUNACHAL PRADESH 10

ECONOMIC SNAPSHOT – PERCENTAGE

DISTRIBUTION OF GSVA

There has been a shift in the sectoral contribution from primary and

secondary to the tertiary sector. The overall performance of the

economy during 2015-16 was buoyant.

The primary and tertiary sectors continue to dominate the

composition of GSVA of the North-eastern state. In 2015-16, the

primary sector contributed 42.75% to the state’s GSVA at current

prices, followed by the tertiary sector with a share of 38.76% & the

secondary sector with a share of 18.49%.

At a CAGR of 16.07%, the secondary sector has been the fastest

growing sector among the 3 sectors from 2011-12 to 2015-16.

The tertiary sector expanded at a CAGR of 13.99% between 2011-

12 & 2015-16. Growth has been driven by trade, hotels, real estate,

banking, insurance, transport, communications & other services.

The primary sector increased at a CAGR of 13.09% between 2011-

12 and 2015-16.

Visakhapatnam port traffic (million tonnes) GSVA composition by sector

44.08% 42.75%

17.19% 18.49%

38.73% 38.76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2015-16

Primary Sector Secondary Sector Tertiary Sector

13.09%

13.99%

16.07%

CAGR

Source: Directorate of Economics & Statistics of Arunachal Pradesh, Central Statistics Office Sector-wise %share of GSVA, Ministry of Statistics and Programme Implementation

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ECONOMIC SNAPSHOT – AGRICULTURE

PRODUCTION

The state's economy is largely agrarian, based on the terraced

farming of rice and the cultivation of crops such as maize, millet,

wheat, pulses, sugarcane, ginger, oilseeds, cereals, potato &

pineapple.

In 2016-17, total production of horticulture crops in the state was

recorded at 422.98 thousand metric tonnes, while the total

production of fruits & production of vegetables in the state stood at

around 311.53 thousand metric tonnes & 33.34 thousand metric

tonnes, respectively.

The state also produces various food grains including paddy (rice),

cereals, etc. Major cereal crops of the state are rice, wheat, maize &

millet.

Under Rashtriya Krishi Vikas Yojana, Rs 40.51 crore (US$ 6.29

million) was allocated to the state during 2017-18.

Source: NEDFI Databank, Ministry of Agriculture, 1st Advance Estimates for 2016-17

Crop Annual production – 2016-17

(‘000 metric tonnes)

Flowers 0.08

Paddy (rice)

2,309.3

Fruits 311.53

Cereals 101.81

Vegetables 33.34

Plantation 8.33

Aromatics & medicinal 0.99

Spices 68.70

Honey 0.00

Cabbage 9.62

Cauliflower 2.67

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ECONOMIC SNAPSHOT – INVESTMENTS AND FDI

INFLOWS

According to the Department of Industrial Policy & Promotion (DIPP),

FDI inflows1 to the Northeast states totalled to US$ 100 million from

April 2000 to September 2017.

FDI inflows in northeast states between April 2016 and September

2017 totalled to US$ 4 million.

Northeast states contributed around 0.03% share to the cumulative

FDI inflows in India during 2016-17.

Visakhapatnam port traffic (million tonnes) FDI equity inflows1, 2008-09 to 2016-17 (US$ million)

Source: Department of Industrial Policy & Promotion 1Including Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura

42

11

8

1

5

0.6

5

10

2

0

5

10

15

20

25

30

35

40

45

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

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ANNUAL BUDGET 2017-18

Source: State Budget 2016-17

For the Financial Year 2017-18, the category-wise breakup of the financial plan for the state of Arunachal is as follows:

Category 2017-18

Health & Family Welfare 173.70

Industries 34.17

Agriculture 32.25

Horticulture 20

Roads & Bridges 86.24

Sports 7.76

Geology & Mining 2.47

Tourism 17.98

Power 181.1

State annual budget (US$ million)

Source: USD = INR 64.4273

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PHYSICAL INFRASTRUCTURE – ROADS

Source: NHAI, Arunachaltimes

Arunachal Pradesh has about 12,169 km of major district roads. The

state government has also allocated US$ 4.98 million for the

reconstruction of the district roads that were not included under the

CC (Cement Concrete) road projects in the budget 2015-16.

National Highways and Infrastructure Development Corporation Ltd

(NHIDCL) will invest Rs 15,000 crore (US$ 2.30 billion) which will

cover 800 km of the roads in the state.

National Highways and Infrastructure Development Corporation Ltd

(NHIDCL) has taken up 35 road projects, in the state, with a total

length of 1,007.24 km, of which tenders for 32 projects have already

been awarded as of July 15, 2017.

During 2016-17 (up to November 2016), under Pradhan Mantri

Gram Sadak Yojana (PMGSY), an expenditure of US$ 23.10 million

was allocated by the state government for development of road

works in the state. During 2017-18, the government is targeting

completion of 1,200 km of roads under the scheme.

In March 2017, the state completed construction of a new bridge on

the Dhola-Sadiya ghat, which will streamline the traffic scenario,

while connecting the states of Arunachal Pradesh & Assam. It will

also become a point of convenience for various districts located on

higher altitudes

In May 2017, the government inaugurated the country’s longest 9.15

kms bridge over the Brahmaputra tributary, Lohit, which links Dhola

in Assam & Sadiya in Arunachal Pradesh. Source: Maps of India

Road infrastructure Road length (km)

National highways (km) 2,513.05

Total 20,137.05

Status under PMGSY (During 2016-17)

Habitations connected 250

Length completed (km) 59.420

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PHYSICAL INFRASTRUCTURE – AIRPORTS AND

RAILWAYS

Source: Airports Authority of India; Department of Civil Aviation, Government of Arunachal Pradesh. North East Frontier Railway (NEFR) ^Non-operational, *Major route State Budget

2015-16, theshilliongtimes

In February 2015, the Government of Arunachal Pradesh

announced plans to construct 6 new airports in the state. The first

airport in Tezu is expected to become operational in 2018.

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 & connect the Upper Assam areas with

Arunachal Pradesh.

Railway projects worth Rs 90,000 crore (US$ 13.97 billion) are

going on in the north eastern region of the country. Surveys of seven

new broad-gauge railway lines were started in May 2017.

As of June 2017, Union Ministry of Railways is readying to build

huge railway infrastructure in the state, beginning with surveying of

3 railway tracks linking Tawang. The projects are estimated to

require investment of around USD7.43 billion to USD10.41 billion.

As of April 2017, the state government is planning to build a new

commercial airport with night-landing facility at Tezu.

In April 2017, the government announced its plans to start the

project of 3 strategic lines - North Lakhimpur-Bame-Aalo-Silapathar

(247.85 km), Bhalukpong-Tenga-Tawang (378 km) & Pasighat-

Tezu-Parsuram Kund-Rupai (227 km). Execution of the project

would improve the state’s connectivity to northern & eastern

frontiers. The government has allocated a budget of US$ 875.5

million for this project.

Source: Maps of India

Inter-state helicopter service* Domestic airport^

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PHYSICAL INFRASTRUCTURE – POWER

As of October 2017, Arunachal Pradesh had a total installed power

generation capacity of 277.96 MW. Out of these central utilities

contributed 168.97 MW, private utilities contributed 4.29 MW & state

utilities contributed 104.61 MW.

Renewable energy in conjunction with hydropower are the major

sources of electricity generation in the state & contributed around

108.99 MW & 97.45 MW to the installed capacity of the state,

respectively.

In May 2017, UJAAS received a letter of intent from Arunachal

Pradesh Energy Development Agency to design, supply, install, test

and commission a 200kwp-Grid Connected Solar PV Plant at State

Assembly Building in Itanagar. Arunachal Pradesh’s environment ministry panel has approved

Nyamjang Chu hydropower project worth US$ 1.06 billion, in the

Tawang region of Arunachal Pradesh. Once built, the plant will

produce 780 MW of electricity.

Dibang project in Arunachal Pradesh has received the government's

approval for diversion of land. A 3,000 MW hydel project will be

constructed by NHPC (National Hydroelectric Power Corporation),

and is expected to get completed by the end of 2019.

Installed power capacity (MW)

Source: Central Electricity Authority

18

0.1

20

1.9

21

3.3

21

3.7

24

9.4

24

9.4

26

1.2

25

7.9

27

3.8

0.0

50.0

100.0

150.0

200.0

250.0

300.0

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

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201

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201

5-1

6

201

6-1

7

Year Revenue (US$ million)

2009-10 15.99

2010-11 19.91

2011-12 17.18

2012-13 15.61

2013-14 15.44

2014-15 19.77

Power industry revenue (US$ million)

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PHYSICAL INFRASTRUCTURE – TELECOM

According to Telecom Regulatory Authority of India (TRAI),

Northeast had a total of 12,903,129 wireless and 115,229 wireline

subscribers as of September 2017.

By the end of September 2017, 604,878 subscribers had submitted

request for mobile number portability in the Northeast. Moreover,

total tele-density in the Northeast region was recorded to be 91.81%

as of September 2017.

As of FY17, Vodafone has invested USD327.23 million to expand,

modernize and build a more technologically advanced and energy

efficient network in Assam and North East areas.

The government has allocated a special package to Arunachal

Pradesh for developing telecommunication system in the state. The

proposal was made during the two days meeting of DoT at

Guwahati in February 2017. The project would involve setting up

6,000 towers across North East India.

Telecom Infrastructure (as of September 2017)

Wireless subscribers

12,903,129

Wire-line subscribers

115,229

Internet subscribers (millions)

6.3

Rural internet subscribers (millions)*

2.22

Urban internet subscribers (millions)*

3.91

Source: Telecom Regulatory Authority of India, India Post, Combined figures for the

Northeast states comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland

and Tripura * As of June 2017

Source: Economic Times, The Hindu Businessline, Telecom Regulatory Authority of India

Some of the major telecom operators in Arunachal Pradesh

Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Aircel Limited

Vodafone

Reliance Communications

Idea Cellular

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DEVELOPMENT PROJECTS: URBAN

INFRASTRUCTURE

Urban infrastructure projects are developed under the Jawaharlal

Nehru National Urban Renewal Mission (JNNURM). Development

projects related to water supply, solid waste management and urban

transport have been sanctioned under the JNNURM. In addition,

welfare scheme for the urban poor, Integrated Low Cost Sanitation

scheme (ILCS), etc. are operational across the state of Arunachal

Pradesh for conversion of dry latrines into pour flush latrines and

construction of new latrines.

By the end of 2014, JNNURM cumulatively approved 3 urbanization

projects worth US$ 0.497 million for urban development in Arunachal

Pradesh.

As of October 2017, 44,119 houses have been completed under the

BUSP scheme (covered under JNNURM), while 3,144 houses are

under construction.

In April 2017, the state government declared Nirjuli Village-1 in

Papum Pare district as the first digital village of the state. In this

digital village, cashless transactions are to be done through mobile,

even in 'sabji mandis’.

Urban infrastructure projects approved under JNNURM

Project name Amount (US$ million)

752 dwelling units with basic service to

urban poor for Karsingsa, Itanagar 7.49

1

Co and Improvement shelter for urban

poor safai karamchari at Pappu Nallah,

Naharlagaun

0.681

BSUP housing scheme for

construction of 144 dwelling units at

Nirjuli, Itanagar

1.931

Urban Infrastructure Projects on priority for NEC* Annual Plan

2016-17

Project categories Outlay Amount (US$ million)

Public Works Department 8.52

PHED 7.67

Power 2.33

Trade & Commerce 2.33

Urban Development 1

Tourism 1.55

Others 6.4

Source: JNNURM, Ministry of Urban Development, Government of India, Budget 2015-16 of

Arunachal Pradesh

Source: Department of Planning, Itanagar 1 NEC: North Eastern Council

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SMART CITY

In September, 2015, a meeting was held between the ministry of Urban Development & Parliamentary Affairs and the state government for the

establishment of smart city in the state and Itanagar had been selected as a smart city. A amount of US$ 12.11 million would be sanctioned to

Arunachal Pradesh for various projects under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) by the central government.

In June 2017, Pasighat town was included in the list of 30 smart cities announced along with two Northeastern States cities Aizawl (Mizoram) and

Gangtok (Sikkim).

The government has proposed a total investment of US$ 8,908 million for the development of these 30 cities, of which US$ 7,276 million will be for

core infrastructure and US$ 1,632 million for technology-based solutions. With this, the total approved investment under the smart city plans of 90

cities sums up to US$ 29,670 million.

All 30 cities will put in place integrated command and control centres, enabling coordination among various agencies for better service delivery

and effective management of scarce resources such as water and power.

Amongst the 30 cities announced, 26 have proposed affordable housing projects that would benefit the urban poor, 26 cities will be investing in

school and hospital projects, 29 will be taking up redesign and redevelopment of roads.

Additionally, 20 more cities including Itanagar, Arunachal Pradesh, will be contesting for the remaining 10 slots under the Smart City Mission.

Source: Census Organization of India

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SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)

As per the 2011 census, Arunachal Pradesh has a literacy rate of

65.38%; the male literacy rate stood at 72.60% the female literacy

rate at 57.70%

There is a proposal to establish 5 degree colleges, 7 new

polytechnics & 5 new technical/professional colleges in the state.

Moreover, the Government plans to setup 2 new model colleges at

Tirap & Longding districts to improve the education sector.

Arunachal Pradesh has become the first state in the country to

launch a web-based educational program for all schools in

collaboration with Google Inc. The system aims to bring the power of

the web into the classroom & improve productivity by simplifying the

teaching process.

Under Sarva Shiksha Abhiyan, US$ 30 million was released by

Government of India for Arunachal Pradesh, during 2016-17.

As of March 2017, the state government planned to open an

engineering college in Param Pare district under Rashtriya

Uchchatar Shiksha Abhiyan (RUSA) scheme.

In March 2017, the state government decided to introduce the

concept of smart classes to 264 government run higher secondary &

secondary schools. The classes will be for students of 9th & 10th

classes & will use Information & Communication Technology (ICT) to

impart education.

Literacy rates

Source: Census 2011

Literacy rate 65.38

Male literacy 72.60

Female literacy 57.70

Central Assistance Released under Mid Day Meal Scheme (US$

million)

Source: Ministry Of Human Resource Development

2013-14 6.15

2014-15 5.12

2015-16 5.02

2016-17 5.20

2017-181

2.49

Note: 1 As of September 2017

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SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)

Higher education infrastructure (2016-17)

Source: Directorate of Higher and Technical Education, Government of Arunachal Pradesh,

* 2015-16 Source: Directorate of Higher and Technical Education, Government of Arunachal Pradesh 1Deemed university, 2 Under the Central Agricultural University

Universities/deemed universities 9

Engineering colleges* 24

Polytechnics* 2

Medical colleges* 4

Other colleges* 8

Major higher educational institutes in Arunachal Pradesh

North Eastern Regional Institute of Science and Technology1, Nirjuli

National Institute of Technology, Yupia

Jawaharlal Nehru College, Pasighat

Industrial Training Institute (Roing, Daporijo and West Kameng

district)

College of Horticulture and Forestry2

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SOCIAL INFRASTRUCTURE – HEALTH

To support its huge rural population, Arunachal Pradesh has a three-

tier public healthcare infrastructure comprising sub-centres, primary

health centres and community health centres. In addition, there are

district hospitals in most districts.

The state government is taking steps to start a medical college at

Naharlagun for which Rs 45 crore (US$ 6.98 million) was allocated in

state budget 2017-18. The college is expected to start from

academic year 2018-19.

Under the National Health Mission, Rs 298 crore ( US$ 46.3 million)

was allocated to the state.

In budget 2015-16, investment plans of US$ 4.98 million were

announced for Universal Health Insurance Scheme by the

Government of Arunachal Pradesh. The government set aside US$

62.53 million for healthcare for 2016-17.

The Rashtriya Swashth Bima Yojna benefitted nearly 267 families

during 2014-15, as each family was aided with nearly US$ 500

during the year.

In May 2017, women from Pasighat have formed a group known as

“WASE” (War Against Social Evils), to fight against drug issues, due

to growing addiction among youths to opium, brown sugar and

heroin. WASE members also provide counselling to addicts and their

relatives.

Health infrastructure in Arunachal Pradesh

District hospitals

16

Community health centres 63

Primary health centres

143

Sub-centres

304

Ayurvedic dispensaries

4

Homoeopathic hospitals

37

Health indicators of Arunachal Pradesh

Birth rate (per thousand persons)

18.9

Death rate (per thousand persons)

6.2

Infant mortality rate

(per thousand live births) 36

Source: Government of Arunachal Pradesh 1 Per thousand persons, 2Per thousand live

births

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CULTURAL INFRASTRUCTURE…(1/2)

Arunachal Pradesh is predominantly a tribal state and hosts many local scheduled tribes. About two thirds of its population belongs to scheduled

tribe - from 26 major tribes and more than 100 sub-tribes. The different tribes have their own dialects. These tribes 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. The key tourist destinations are Parasuram Kund (Lohit), the Namdapha National Park (Changlang), the Ita Fort and Jawaharlal

Nehru State Museum (Itanagar), the Tawang Monastery (Tawang) and the Sela Lake (Bomdila).

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. Under budget

2017-18, an amount of US$ 75 million would be provided for the development of a convention centre at Itanagar, out door stadium at Pasighat

and for various youth activities. Moreover, US$ 15 million has been allocated for the construction of viewing gallery and artificial turf at Rajiv

Gandhi Stadium and US$ 300 million for the creation of 3-4 sub centres to enhance adventure tourism.

In March 2017, the state government hosted Octave 2017, a 3-day folk dance show festival at Shilapramam, where 166 artistes from Sikkim,

Tripura, Mizoram, Nagaland, Arunachal Pradesh, Manipur, Assam & Meghalaya are expected to perform.

Approved Projects Under Annual Plan 2016-17

Project name Outlay amount (US$ ‘000)

Self defence training for girls in martial arts approved for 244 government schools 34.30

Kala Utsav : Performing arts (dance, music and theatre) 9.37

Source: State Budget 2015-16, 2016-17

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CULTURAL INFRASTRUCTURE…(2/2)

Cultural Infrastructure Projects at Priority for NEC1 Annual Plan 2015-16

Source: Department of Planning, Itanagar 1 NEC: North Eastern Council

Project name Amount (US$ million)

Multi purpose community hall cum indoor stadium at ADC headquarter, Nyapin of Kurun-Kumey District 0.46

Cultural Centre at Solung-Mopin Ground, Itanagar 0.83

Auditorium cum badfminton hall at Brum Village, Naharlagun 0.62

Football stadium at Sakiang under Papum Pare district 0.62

Football stadium at Mai, Lower Subansisri district 0.62

General stadium at Palin, Kra Daadi district 0.62

Multipurpose utility stadium at Parsi-Parlo 0.62

Multipurpose stadium at Parsi-Parlo 0.62

Football stadum at Mebo, East Siang Distrcit 0.62

Multipurpose auditorium cum badminton hall at Noksa, Tirap district 0.62

Multipurpose auditorium cum badminton hall at radum Village, Subansiri district 0.62

Stadium in Dirang 0.62

Football stadium at Lumla 0.62

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INDUSTRIAL INFRASTRUCTURE … (1/3)

Source: Department of Industries, Government of Arunachal Pradesh

Arunachal Pradesh has 12 industrial estates located in different

districts and spread over a total area of 51.9 hectare. These

industrial estates have been developed in land-areas ranging from

4,540 to 202,342.8 square metres, with the primary objective of

growth and development of small scale industries.

The Government of Arunachal Pradesh decided to distribute US$

1.55 million among unemployed engineers in the state for the

purpose of establishing manufacturing units/small scale industries in

the state in 2016-17.

An amount of US$ 0.08 million was planned for the feasibility study

of special economic zones (SEZs) in Arunachal Pradesh.

In order to promote agro-based industries, the Government proposed

to provide special incentives such as VAT refund for the next five

years from the date of production.

Moreover, in order to attract more investments the government is

providing financial assistance and monitoring to food processing

units under scheme for Technology Up gradation / Establishment /

Modernization, given the companies satisfy the some eligibility

criteria.

Notified industrial estates

Location District Area (sq m)

Deomali Tirap 18,360

Khonsa Tirap 4,540

Pasighat East Siang 80,080

Tawang Tawang 28,665

Tippi West Kameng 27,961.32

Wanghoo West Kameng 60,705

Naharlagun Papumpare 32,376

Chandranagar Papumpare 16,188

Namsai Lohit 16,188

Changlang Town Changlang 11,372

Khachang Changlang 20,025

Bam West Siang 202,325

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INDUSTRIAL INFRASTRUCTURE … (2/3)

Source: Department of Industries, Government of Arunachal Pradesh; Ministry of Development of North Eastern Region, Government of India; NLCPR - Non-Lapsable Central Pool of

Resources (NLCPR)

The central government launched "Look East Policy" which has

helped in development of infrastructure for industries and trade. In

July 2015, Government of Arunachal Pradesh has announced to set-

up a 12,000 MW hydroelectric plant in the state. Government has

also targeted to include 42 hydroelectric projects with an estimated

capacity of 27,000 MW in the coming years.

For the development of infrastructure of Arunachal and other north

east states, Non-Lapsable Central Pool of Resources (NLCPR)

releases funds for various projects.

During FY’17 two project were sanctioned under the state of

Arunachal Pradesh under the NLCPR Scheme, worth US$ 7.88

million.

Notified integrated infrastructure development centres

NLCPR sanctioned projects and approved costs for Arunachal

Pradesh

9

24

8 1 2

24.15

59.03

10.76 2.21

7.88

0

20

40

60

80

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

Sanctioned Projects (Nos.) Approved Costs (US$ Million)

Location District

Deomali Tirap

Tippi West Kameng

Dirang West Kameng

Iduli Dibang Valley

Balinong Changlang

Notified industrial areas

Location District

Bhalukpong West Kameng

Roing Dibang Valley

Tezu Lohit

Banderdewn Papumpare

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INDUSTRIAL INFRASTRUCTURE … (3/3)

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. In addition, as of April 2015,

there were 6 industrial training institutes (ITIs) in Arunachal Pradesh. Out of these, five are run by the Government and one ITI is privately

controlled.

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

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EMPLOYMENT OPPORTUNITIES

A skill university is being set up on public private partnership basis. The first phase of the university will start operation is FY18. Three

employability centers will also be opened by the state government.

The state plans to train 9,000 youth in FY18, under the ‘Pradhan Mantri Kaushal Vikas Yojana’.

Four Industrial training institutes will be made operational by 2018.

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 2015-16, creation of 12,300 job opportunities was targeted. However, nearly 15,000 youth were employed during the

year, exceeding the set target by a huge margin.

The Chief Minister's Skill Development Programme helped in improving employability of educated unemployed youth in the state. Its main

objective is to provide 100,000 jobs for unemployed youths during the 12th Five Year Plan. Under this initiative, Job Mela-cum-Skill Development

Interview Rally is being organised at regular intervals. Till May 2015, more than 61,500 youths have been employed or self employed.

Furthermore, the state government has announced that a minimum of 10% 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 decision of establishing a skill development centre in a phased manner in each & every district of the state was also made in the budget of

2015-16. In addition to this, an employment opportunity, under the Arunachal Agriculture Employment Generation Scheme, with an allocation of

US$ 0.31 million was allocated in annual plan 2016-17.

Other schemes that have helped in employment generation include: National Rural Employment Guarantee Act (NREGA), Prime Minister's

Rozgar Yojana (PMRY), Rural Employment Generation Programme (REGP), Scheme for Working Women Hostels, Swarnjayanti Gram

Swarozgar Yojana (SGSY) and Training of Rural Youth for Self-Employment (TRYSEM).

The government initiated talks with the officials of Oil India Limited to resume operations in the state & to explore areas from where oil & natural

gas can be extracted. It would lead to more business activities, which would add to the economy, to set up more industries as power will be

generated & will also provide employment opportunities to the unemployed youth.

Source: Government of Arunachal Pradesh, State Budget 2015-16

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KEY INDUSTRIES

The resources, policy incentives & climate in state support

investments in mining & mineral products (including cement), tissue

culture & floriculture, plantation crops (tea, rubber, etc.) & agro-

based industries.

North Eastern Development Finance Corporation Ltd is engaged in

catalysing industrial growth of the Northeastern states (including

Arunachal Pradesh) by providing counselling, timely advice &

assistance for building quality enterprises.

The central government also approved the North East Industrial and

Investment Promotion Policy (NEIIPP), 2007. The policy provides

several incentives: incentive on business expansion, 100% excise

duty & income tax exemption, capital investment subsidy, interest

subsidy and insurance premium reimbursement.

The Department of Industries has set up District Industries Centres

(DICs) & Sub-District Industries Centres (Sub-DICs) for the industrial

development of small scale, tiny & village industries.

Key industries in Arunachal Pradesh

Art and crafts

Weaving

Cane and bamboo

Carpet weaving

Wood carving

Ornaments

Tourism

Horticulture

Saw mills and plywood

Power

Mineral-based industry

The Department of Industries, Government of Arunachal Pradesh, is

responsible for promoting industrial activities in the state to provide

employment opportunities to the rural and urban people.

The DICs also help the local entrepreneurs in identifying suitable

schemes, preparing feasibility reports, arranging supply of tools and

equipment, providing credit facilities, etc.

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KEY INDUSTRIES – POWER … (1/3)

As of October 2017, Arunachal Pradesh had a total installed power

generation capacity of 277.96 MW. Hydro energy (97.45 MW)

accounted for around 35.1 per cent of Arunachal Pradesh’s installed

power generation capacity. The Department of Hydropower

Development, Arunachal Pradesh, is wholly entrusted with the

design, construction, operation and maintenance of hydropower

projects in the state.

After renewable energy & hydropower, thermal power is the prime

source of electricity generation in the state. As of October 2017, the

state accounted for an installed capacity of power generation of

71.52 MW from thermal power plants out of which 46.82 MW is

contributed by gas power plants & 24.70 MW from coal power plants.

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. The

Government has invited domestic power companies in the region to

develop hydropower plants.

As of April 2017, the government is planning to light up 900 remote

villages comprising 16,000 households in the state, using advanced

off-grid renewable energy kits. Apart from this, there is a project to

install 4,000 off-grid street lights in far-flung areas.

Government of India has sanctioned 16 new renewable energy

projects in the state worth Rs 426.51 crore (US$ 66.20 million).

Source: Central Electricity Authority

Some of the key players

NTPC Ltd

NHPC Ltd

North Eastern Electric Power Corporation (NEEPCO)

Bhilwara Energy Ltd

For the installation of 40,000 MWp grid connected solar rooftop

system in the country by 2022, the target allocated for the state is 50

MWp. Four of the biggest projects under construction include the

2,000 MW Subansiri Lower, 600 MW Kameng, 110 MW Pare

hydroelectric project. The 1,750 MW Demwa Lower hydroelectric

project is expected to be commissioned by early 2019.

A 2x30 KW Ashapani micro hydel project has been commissioned in

Anjaw district of the state, with an objective of electrification of

Chaglagam circle and its adjoining villages. Moreover, the

department has been working on a 2*100 KW hydel Kachopani

project, expected to be completed by December.

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. These projects are expected to be operational by

2019.

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KEY INDUSTRIES – POWER … (2/3)

NTPC Ltd is a Maharatana Public Sector Unit (PSU) engaged in thermal power production. The company is

among the 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 Siang district, Arunachal Pradesh. The

company’s revenues stood at US$12.89 billion in 2016-17 and in the 1st quarter of the 2017-18 total income of the

company stood at US$ 3.05 billion.

NHPC Limited (formerly known as National Hydroelectric Power Corporation Limited) is a public 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 Tawang district, one in the Dibang district and one in Subansiri Lower district. In 2016-17, the company

reported revenues of US$13.54 billion and in the 1st quarter of 2017-18 total revenues generated were US$

357.01 million

North Eastern Electric Power Corporation (NEEPCO) is a central PSU engaged in power generation in the

Northeastern region. It is one of the oldest power generating companies and controls 55.0% 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). The company earned a total revenue of US$ 222.8 million in 2016-17.

Jindal Power Limited (JPL), a subsidiary of Jindal Steel & Power Ltd, has major presence in power generation and

has set up several mega power projects in the country. In 2015-16, the company reported revenues of US$2.81

billion. In 2016-17, the company reported revenues of US$ 2.38 billion

NTPC Ltd

NHPC Ltd

North Eastern Electric

Power Corp (NEEPCO)

Jindal Power

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KEY INDUSTRIES – POWER … (3/3)

Source: Central Electricity Authority, 1 As of October, 2015

Hydro power projects in the North East , June 2017

Central sector Private State/unallocated

Installed capacity (MW) Installed capacity (MW) Installed capacity (MW) Total installed capacity (MW)

Arunachal Pradesh 168.97 0.27 104.61 273.84

Assam 1,045.81 40.38 453.46 1,539.65

Manipur 191.90 0.03 41.45 238.38

Meghalaya 205.28 0.01 353.03 558.32

Mizoram 125.35 0.10 41.47 166.92

Nagaland 123.70 0.50 30.67 154.87

Tripura 536.73 5.09 185.51 727.33

Central -

Unallocated - - - 265.88

Total 2633.62 46.38 1,270.20 3,950.19

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KEY INDUSTRIES – MINERAL-BASED INDUSTRY

Source: Indian Bureau of Mines

Arunachal Pradesh has considerable mineral reserves & preliminary

studies have highlighted economic mineral deposits in considerable

quantity.

The state has reserves/resources of coal in Namchik Namphuk

Coalfields; dolomite in West Kameng district; fuller's earth in Tirap

district; graphite in Lohit, Upper Siang and Upper Subansiri districts;

and limestone in Dibang Valley, Lohit, Upper Siang and Upper

Subansiri districts.

Production of raw coal in the state increased from 79,000 tonnes in

2007-08 to 189,400 tonnes in 2014-15.

During the year 2016-17 total value of mineral production in the state

stood at US$ 18.19 million.

Arunachal State Mineral Policy, 2014 has been prepared on the

basis of the objectives of the National Mineral Policy, 2008. Creation

of Arunachal Mineral Development Fund shall be in accordance with

this policy for its utilisation towards mineral exploration and

development of mining activities in the state.

During 2014–15, mineral production generated US$ 76.4 million for

the state’s exchequer. Total extraction of coal since April 2007 to

March 2015 was 1.8 million tonnes.

During FY171, the total production of crude petroleum in the state

stood at 54 thousand tonnes. The state also produced 11 mcm of

natural gas, during the same period.

Source: Maps of India Reserves/resources of minerals in Arunachal Pradesh

Ore/mineral Reserves (million tonnes)

Coal 86.5

Dolomite 78.3

Limestone 482.79

Graphite 72.75

Fuller's earth 20.01

Quartzite 5.27

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KEY INDUSTRIES – AGRICULTURE AND FOREST-

BASED INDUSTRIES

Agriculture is the mainstay of the economy of Arunachal Pradesh. It

is mainly depended on 'jhum' cultivation. The state’s agriculture and

allied sectors have growth rates that are three times the national

average.

Major agro and forest based industries in the state are related to tea,

fruit, non-timber and plywood industries. Around two-thirds of the

state’s population is dependent on climate sensitive natural

resources such as agriculture, forest, biodiversity and water

availability.

The state government’s New Agricultural Policy 2001 aims to

achieve higher economic growth and create job opportunities for the

unemployed in rural areas. The state government is focusing on

improving farmer income through higher productivity, use of suitable

farm techniques, upgrading technical competency, marketing support

and availability of a cooperative credit network.

Non-timber based industries include bamboo, cane, rubber and

medicinal plants.

The industry is characterised by many regional players; several units

have been set up by the Arunachal Pradesh Forest Corporation

(APFC), a government organisation.

Horticulture has a vast potential, owing to good agro-climatic

conditions and topography, for the development of varied varieties of

fruits and vegetables.

Source: Arunachal Pradesh State Portal

Under Rashtriya Krishi Vikas Yojana, Rs 40.51 crore (US$ 6.29

million) was allocated to the state during 2017-18.

In October 2016, edible oil maker, Ruchi Soya Industries, signed a

memorandum of understanding (MoU) with Government of

Arunachal Pradesh to boost palm oil production, in the state, through

development of quality palm plantations and human capacity building

on 25,000 hectares of land in four districts of the state - West Siang,

East Kamang, Lower Subansri and Papumpare.

In April 2017, the Arunachal Pradesh government launched the

‘State Organic Mission’ to make the state an organic farming hub.

The North Eastern region of the country has 1.67 million hectares of

area under shifting cultivation, where no inorganic input has ever

been used.

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KEY INDUSTRIES – TOURISM

Tourism has grown rapidly in the recent years with eco and

adventure tourism, cultural tourism and religious tourism being the

major areas of interest. Major sports of interest to travellers include

angling, boating, rafting, trekking and hiking.

A committee of experts will map out the potential of adventure

tourism in the state with an investment of Rs 300 crore (US$ 46.56

million, as per state budget 2017-18.

Arunachal Pradesh is an “Orchid Paradise”, accounting for 601

species of orchids, or 52 per cent of the species known in India.

Various orchid centres are situated in Itanagar, Tipi, Sessa, Dirang,

Jengging, Roing, which have a good germ-plasm collection of nearly

400 species of orchids as well as hybrids. An orchid research centre

has been established at Tipi to promote orchid conservation,

research and development.

Popular tourist attractions include Tawang (a town with a Buddhist

monastery) at 3,000 m elevation, Ziro (which holds cultural festivals),

Basar, the Namdapha tiger project in Changlang district and Sela

lake near Bomdila with its bamboo bridges overhanging the river.

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$ 0.56

million was made during 2014-15. In 2015-16 the state received

345,000 tourists which is estimated to have grown by 20% in 2016-

17 to 414,000.

The inception of railways in the state is expected to boost tourist

arrivals. The Government inked an MoU with the Indian Railway

Catering and Tourism Corporation for promoting the tourism sector.

To boost tourist inflow and make the state more visitor friendly, the

Government is working on simplifying the process of application &

issuance of the Inner Line Permit.

Under the Swadesh Darshan scheme, for the development of

adventure tourism in the state, US$ 4.56 million was sanctioned by

the state government, during 2016-17.

Source: Ministry of Tourism, Government of India

Tourists Arrivals in Arunachal Pradesh (in ‘000s)

152 199

143

243

322

136 186

345

414

0

100

200

300

400

500

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E

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KEY INDUSTRIES – TEXTILES

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.

Carpets are woven with varied colours, designs (geometric, dragon, floral) and shapes. The other main products of the industry in the state are

wall hangings, cushion pads, telephone pads, floor coverings, etc. With increase in demand, carpets have become a major item of trade as well as

a major occupation for women folks of the state.

In 2016-17, the state produced 45 metric tonnes of raw silk.

Under NERTPS (North East Region Textile Promotion Scheme) programme, in-situ conservation is being done for muga as well as other species

of wild silk moth in the state.

Under the ‘North East Region Textile Promotion Scheme’, 24 sericulture projects are being implemented in for holistic development of sericulture

in the state. The projects have been approved for implementation from FY15-19 with a cost of Rs 920.78 crore (US$ 127.4 million).

Source: Department of Textile & Handicraft(s), Arunachal Pradesh Central Silk Board, Ministry of Textiles – Government of India

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KEY APPROVALS REQUIRED

Source: Government of Arunachal Pradesh

S No List of approvals and clearances required Concerned department of 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

4 Allotment of land Arunachal Pradesh Industrial Development and Financial

Corporation Limited/ Department of Industries

5 Site environmental approvals Ministry of Environment and Forests, Government of

India; Arunachal Pradesh State Pollution Control Board

(APSPCB) 6 No-objection certificate and consent under Water and Pollution Control Act

7 Registration under State’s Sales Tax Act and Central and State Excise Act Department of Tax and Excise, Government of Arunachal

Pradesh 8 Commercial taxes

9 Sanction of power

Department of Power, Arunachal Pradesh 10 Power feasibility

11 Power connection

12 Approval for construction activity and building plan Respective District Municipality

13 Water and sewerage clearance

Department of Public Health Engineering

14 Water connection

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Agency Description

Department of Industries

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:

• Formulating Industrial Policy and setting up of industrial estates/growth centres/ district

industries centres.

• Registering and regulating industries.

• Providing financial assistance to small scale and other industries.

• Distributing scarce and indigenous raw-materials to different industrial units.

• Apprenticeship Training Programmes through ITIs and other industrial development related

activities.

Arunachal Pradesh Industrial Development

and Financial Corporation Limited

(APIDFC)

Incorporated under the Companies Act, 1956, in August 1978.

To promote and set up finance industries in Arunachal Pradesh.

For industrial development in Arunachal Pradesh, the infrastructure facilities that are being handled

by the Department of Industries of the state are expected to be handed over to APIDFC.

Implement schemes of assistance of National Scheduled Castes and Scheduled Tribes Finance

and Development Corporation Limited (NSFDC).

Arunachal Pradesh Energy Development

Agency (APEDA)

Established in the year 1996, the State Government Agency, Arunachal Pradesh Energy

Development Agency (APEDA) is registered under the Societies Registration Act 1860.

State Designated Agency (SDA) for implementation and enforcement of the Energy Conservation

Act, 2001, in coordination with the Bureau of Energy Efficiency (BEE), Ministry of Power,

Government of India.

Also the state nodal agency for projects connected with Clean Development Mechanism (CDM).

KEY INVESTMENT PROMOTION OFFICES … (1/2)

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KEY INVESTMENT PROMOTION OFFICES … (2/2)

Agency Description

North Eastern Development Finance

Corporation Limited (NEDFi)

NEDFi is promoted by leading public financial institutions: Industrial Development Bank of India

(IDBI), State Bank of India (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 subsidiaries. Incorporated in August

1995, NEDFi is headquartered in 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.

North Eastern Handicrafts and Handloom

Development Corporation (NEHHDC)

North Eastern Handicrafts and Handloom Development Corporation (NEHHDC), is under the

control of Ministry of Development of North Eastern Region (DoNER), Government of India.

Established in 1977, the corporation develops and promotes the region’s indigenous crafts by

connecting various craftsmen of the region and creates different opportunities.

Improves the accessibility of various goods by establishing and promoting sales centers in the

region.

Facilitates provision of technical, financial and other related guidance for various craftsmen,

weavers, etc.

To upgrade traditional skills by providing proper training.

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CONTACT LIST

Agency Contact information

Department of Industries

Government of Arunachal Pradesh

Udyog Sadan, ltanagar - 791111

Phone: 91-360-2212 323/ 2214 456

Fax: 91-360-2211 569

E-mail: [email protected]

Arunachal Pradesh Industrial Development

and Financial Corporation Limited

(APIDFC)

C Sector, Near Petrol Pump

Itanagar - 791111

Phone: + 91-360-2211 763, 2212 012

Arunachal Pradesh Energy Development

Agency (APEDA)

Urja Bhawan

Post Box No 124,

Itanagar - 791111

Arunachal Pradesh

Phone: 91-360-2211 160, 2217870

E-mail: [email protected]

North Eastern Development Finance

Corporation Ltd (NEDFi)

NH-52A, Main Road, E-Sector,

Itanagar - 791111,

Arunachal Pradesh

Phone/Fax: 91-360-2217 694

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COST OF DOING BUSINESS IN ARUNACHAL PRADESH

Cost parameter Cost estimate Source

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

Power cost (per kWh) Commercial: US 6.0 cents to US 8.5 cents

Industrial: US 7.5 cents to US 9.0 cents

Department of Power, Government of Arunachal

Pradesh

Labour cost (agriculture)

(minimum wages per day)

Unskilled: US$ 4.7 to US$ 5.29

Skilled: US$ 5.30 to US$ 6.28

Ministry of Labour and Employment,

Government of India

Water (per 1,000 litres) Commercial and industrial: US 20 cents Industry sources

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STATE ACTS AND POLICIES

Public Private

Partnership Policy 2011

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.

Facilitate and promote growth of the industry, employment and investment in the state.

To attract investments from domestic and foreign companies.

State Industrial Policy

2008

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 speed 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.

Hydro Power Policy 2008

Objectives

Agriculture Policy 2001

To promote advancement and high economic growth in the state and provide various job opportunities to the

unemployed in rural regions by the means of agriculture as well as allied sectors.

To deal with various problems related with agriculture and provide some effective ways to repair them.

Facilitate and promote growth of small hydropower plants through private participation, thereby increasing

employment opportunities in the state.

Small Hydro Power

(SHP) Policy 2007

Promote the Northeast as an attractive investment region through concessions and incentives promoting growth in

the region.

North East Industrial and

Investment Promotion

Policy (NEIIPP) 2007

Read more

Read more

Read more

Read more

Read more

Read more

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EXCHANGE RATES

Source: Reserve Bank of India

Exchange rates (Fiscal Year)

Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 46.88

2012-13 54.31

2013-14 60.28

2014-15 60.28

2015-16 65.46

2016-17 64.43

Q1 2017-18 64.46

Q2 2017-18 64.29

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DISCLAIMER

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