nagaland - august 2013

7/27/2019 Nagaland - August 2013

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Unexploited naturalresources

Nagaland has around 600 million metric tonnes of crude oil and more than 20 milliontonnes of hydrocarbon reserves, which are unexploited. Moreover, over 1000 milliontonnes of high chemical grade limestone reserves can be found in the eastern region.

Hydropower generationpotential

Nagalands estimated hydropower generation potential is 1,000 MW, while the installedcapacity is 53.32 MW as of April 2013, presenting huge investment opportunities.

Bamboo and sericulture

Bamboo is found extensively in Nagaland, with bamboo growing stock covering about 5.0per cent of the total stock in the country. Nagaland also has enormous potential in raw silkproduction, and it aims to increase silk production by five times to 1,700 MT over the 12th

Five-Year plan period (2012-17).

Floriculture andhorticulture

The agro-climatic conditions in Nagaland provide commercial opportunities for floricultureand horticulture. The state has 650 indigenous species of medicinal and aromatic plants.Honey production in the state nearly tripled to 350 MT over 2007-12.

Source: Nagaland presentation to Planning Commission, 2013-14, Aranca Research

MT: Metric tonnes


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The engineering sector is delicensed;100 per cent FDI is allowed in thesector

Due to policy support, there wascumulative FDI of USD14.0 billion intothe sector over April 2000 February2012, making up 8.6 per cent of totalFDI into the country in that period

Growing demand

Favourable location andabundant resources

Nagalands agro-climatic conditionsfavour agriculture, horticulture andforestry, offering immense potential inthese areas.

The state has considerable resourcesof natural minerals, petroleum andhydropower.

Institutional support

The state provides institutionalsupport through various central andstate government agencies viz., NorthEast Council, Ministry of Developmentof North Eastern Region andNagaland Industrial Development

Council.

Policy and infrastructure

The state offers excellent policy andfiscal incentives for agro-based andforest-based industries, horticulture,food processing, mining, tourism andthe handlooms and handicrafts sectors.

Transport and communicationconnectivity is good. Industrial centresand special economic zones (SEZs) arebeing developed to enhance themarketability of products.

Availability of skilled labour

Nagaland has a high literacy rate of80.1 per cent. A majority of the

population in the state speaksEnglish, which is the official languageof the state.

The state has strong focus ontechnical and medical education.

2012-13

Hydro-power

generationcapacity:

53.32 MW

Potential

The states

hydropowerpotential is1,000 MW

Advantage:Nagaland


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Nagaland is located in the Northeast of India. The state is

surrounded by Myanmar in the east, Arunachal Pradesh inthe north, Assam in the west, and Manipur in the south.

English is the official language and the medium ofeducation. Sixty different dialects of Sino-Tibetan languageare spoken in the state.

Dimapur, Mokokchung, Tuensang, Wokha, Mon andZunheboto are some of the key cities in the state.

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 of the state are paddy,maize, sugarcane, potato and tea.

Parameters Nagaland

Capital KohimaGeographical area (sq km) 16,579

Administrative districts (No) 11

Population density (persons per sqkm)*

119

Total population (million)* 1.9

Male population (million)* 1.0

Female population (million)* 0.9

Sex ratio (females per 1,000 males)* 931

Literacy rate (%)* 80.1

Sources: Government of Nagaland website, http://nagaland.nic.in,*Provisional data Census 2011


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Parameter Nagaland All-States Source

Economy

GSDP as a percentage of all states GSDP 0.14 100Planning Commission Databook,

2012-13, current prices

Average GSDP growth rate (%)* 10.9 15.6Planning Commission Databook,

2004-05 to 2012-13, current prices

Per capita GSDP (US$) 1,179.8 1,414.2Planning Commission Databook,

2012-13, current prices

Physical Infrastructure

Installed power capacity (MW) 116.8 225,133.1 Central Electricity Authority, as of May 2013

Wireless subscribers (No) 8,960,542^ 867,803,583Telecom Regulatory Authority of India,

as of March 2013

Broadband subscribers (No) 5,131 15,050,000**Ministry of Communications & Information

Technology, as of December 2012

National Highway length (Km) 494 79,116Ministry of Road Transport & Highways,

as of March 2013

Airports (No) 1 133 Airports Authority of India

*Calculated in Indian rupee terms, **As of March 2013^Combined figures for the Northeast states comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura


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Parameter Nagaland All-States Source

Social Indicators

Literacy rate (%) 80.1 74.0 Provisional data Census 2011

Birth rate (per 1,000 population) 16.1 21.8 SRS Bulletin (www.censusindia.gov.in), 2012

Investment

Outstanding investments (US$ billion) 6.4 10,499.2 CMIE (2012-13)

Industrial Infrastructure

SEZs (No) 2 385 Notified as of March 2013, www.sezindia.nic.in

SRS: Sample Registration System, SEZ: Special Economic Zone


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At current prices, the gross state domestic product (GSDP)of Nagaland was about US$ 2.5 billion in 2012-13*.

Nagalands GSDP increased at a compound annual growthrate (CAGR) of around 10.9** per cent between 2004-05and 2012-13*.

Source:Planning Commission Databook, 2012-13*Advanced estimates, **In Indian rupee terms

GSDP of Nagaland at current prices (in US$ billion)

1.3 1.51.6

2.0 2.12.2

2.5 2.62.5

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013*

CAGR10.9%**


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At current prices, the Net State Domestic Product (NSDP) ofNagaland was about US$ 2.3 billion in 2012-13*.

Nagalands NSDP increased at a CAGR of 10.9** per centbetween 2004-05 and 2012-13*.

Source:Planning Commission Databook, 201213

*Advanced estimates, **In Indian rupee terms

NSDP of Nagaland at current prices (in US$ billion)

1.2 1.41.5

1.9 1.92.0

2.32.4 2.3

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013*

CAGR10.9%**


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The states per capita GSDP in 2012-13* was US$ 1,179.8as compared to US$ 729.4 in 2004-05.

Per capita GSDP increased at a CAGR of 8.7** per centbetween 2004-05 and 2012-13*.

Source:Planning Commission Databook, 201213*Advanced estimates, **In Indian rupee terms

GSDP per capita of Nagaland at current prices(in US$)

729.4

822.0 871.11,073.1

1,081.2 1,149.31,272.0 1,270.4

1,179.8

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013*

CAGR8.7%**


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The states per capita NSDP in 2012-13* was US$ 1,096.1as compared to US$ 677.2 in 2004-05.

The per capita NSDP increased at a CAGR of 8.8** per centbetween 2004-05 and 2012-13*.

Source:Planning Commission Databook, 201213*Advanced estimates, **In Indian rupee terms

NSDP per capita of Nagaland at current prices(in US$)

677.2

763.1

807.6

993.71,006.5

1,060.2

1,177.01,177.7

1,096.1

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013*

CAGR8.8%**


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The secondary sector has been the fastest-growing sector,expanding at a CAGR of 15.0* per cent from 2004-05 to2012-13. It was driven by construction, manufacturing andelectricity, gas & water supply.

The tertiary sector expanded at a CAGR of 12.2* per centfrom 2004-05 to 2012-13, driven by trade, real estate,

banking, insurance, transport, communications and otherservices. The primary sector expanded at a CAGR of 6.5*per cent from 2004-05 to 2012-13.

In 2012-13, the tertiary sector contributed 57.6 per cent tothe states GSDP at current prices. It was followed by theprimary sector at 25.3 per cent and the secondary sector at17.1 per cent.

Source:CMIE

*In Indian rupee terms

GSDP composition by sector (2012-13)

34.9%25.3%

12.8%17.1%

52.3% 57.6%

2004-05 2012-13

Primary sector Secondary sector Tertiary sector

CAGR*

6.5%

12.2%

15.0%


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Source: National Horticulture Board, NEDFi Databank^Second advanced estimates, *As of 2011-12

CropAnnual production^2012-13 (Tonnes)

Banana 80,000

Pineapple 85,000

Colocasia 48,490*

Ginger 36,000

Potato 32,000

Total cereals 531,860*

Total fruits 271,935

Total vegetables 205,740

Total pulses 36,460*

Agriculture contributes heavily to Nagalands economy. Itcontributed 19.8 per cent to the GSDP of Nagaland in 2012-13. Around 70.0 per cent of the population is engaged in theagriculture sector.

Maize, sugarcane, paddy, banana, pineapple, ginger andpotato are some of the key agricultural products of the state.

In 2011-12, the total food grain production in the state was570,440 tonnes. Rice accounts for 75 per cent of the totalfood grain production and occupies around 70 per cent ofthe total cultivated land.

In 2011-12, the total oilseeds production in the state was68,120 tonnes.

Horticultural produce, agro-processing produce andbamboo have high export potential. Bamboo cultivation isnow being commercialised.

Nagaland Food Private Limited has been established inDimapur Industrial Estate, which specialises in bambooshoot processing, pineapple, passion fruit and orange juiceprocessing.


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According to the Department of Industrial Policy &Promotion (DIPP), the cumulative FDI inflows from April2000 to March 2013 amounted to US$ 78 million*.

In 2012-13, total outstanding investments in the state werearound US$ 6.4 billion.

Investment in the services sector increased significantly,with its share in the total outstanding investments risingfrom 53.0 per cent in 2011-12 to 80.1 per cent in 2012-13.

The services sector was followed by the electricity sector,which accounted for 13.3 per cent of the total outstandinginvestments.

Source:CMIE*FDI inflows for RBIs (Reserve Bank of Indias) Guwahati-

region, which includes Assam, Arunachal Pradesh, Manipur,Meghalaya, Mizoram, Nagaland and Tripura

Break up of outstanding investments by sector(2012-13)

80.1%

13.3%

6.4%

0.2%

Services

Electricity

Manufacturing

Mining


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Source: Ministry of Road Transport & Highways*As of March 2013

Road typeRoad length (km) as of

March 2011

National highways 494*State highways 763Rural roads 22,095

Total road length 34,146

As of March 2013, Nagaland had 494 km of nationalhighways.

The state had 763 km of state highways and 22,095 km ofrural roads, as of March 2011.

The state is well connected with Assam and Manipur

through National Highway (NH)-61, NH-39, NH-36, NH-150and NH-155.

Agencies maintaining roads in the state include the PublicWorks Department (PWD) and Sewak (a Border RoadsOrganisation of the Government of India).

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

Under the Indian governments North-eastern RegionHighway Development Program, 13 road improvementprojects costing around US$ 35.3 million were in progress inthe state as of December 2012.

In May 2013, the Indian government approved the 4-laningof the Dimapur-Kohima section of NH-39. The project cost isestimated at US$ 200.7 million.


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The railway station at Dimapur connects Nagaland to restof the country via Assam.

Around 88 km of the Dimapur-Kohima railway project is inthe planning stage. The central government hasenvisaged completing this US$ 156.5 million project by2015.

Nagaland has one operational airport at Dimapur. Asecond airport is being planned for Kohima.

Airport, Dimapur Railway station, Dimapur


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As of May 2013, Nagaland had a total installed powergeneration capacity of 116.8 MW. It consisted of 86.16 MWunder central utilities and 30.67 MW under state utilities.

Of the total installed power generation capacity, 53.32 MWwas contributed by hydropower, 34.84 MW was contributedby thermal power and renewable power accounted for 28.67

MW of capacity.

The per capita power consumption was 218.0 kWh in thestate in 2009-10.

As of March 2013, the state had achieved 70.1 per cent ofvillage electrification.

Source:Central Electricity Authority*As of May 2013

Installed power capacity (MW)

102.7 103.1 103.1 103.1

116.8 116.8

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14*


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Telecom infrastructure (March 2013)

Wireless subscribers^ 8,960,542

Wire-line subscribers^ 189,884

BSNL subscribers 322,038*

Telephone exchanges 62*

Teledensity of BSNL subscribers (percent)

14.99*

Post offices 328**

Sources: Telecom Regulatory Authority of India, India Post,Department of Telecommunications, Annual Report 2012-13,

^Combined figures for the Northeast states comprising Arunachal Pradesh,Manipur, Meghalaya, Mizoram, Nagaland and Tripura

*As of December 2012, **As of January 2013

As of December 2012, Nagaland has 64 telephoneexchanges. The service is provided through the Northeast-IIcircle of Bharat Sanchar Nigam Limited (BSNL).

As of December 2012, BSNL subscribers in the statetotalled 322,038.

Broadband service in the state is provided by Sify, BSNL,Reliance, Tata Indicom and Airtel.

Department of Telecommunications is implementing ascheme for augmentation, creation and management of theintra-district SDHQ-DHQ OFC^ network in the state.

As of January 2013, the state had 328 post offices.

^SDHQ: Sub-District Headquarters, DHQ: District Headquarter,OFC: Optical-Fibre Cable

Major telecom operators in Nagaland

Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Aircel Limited

Vodafone Essar

Reliance Communications

Tata Teleservices

Idea Cellular


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Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), US$ 25.3 million has been allocated forroads/flyovers, parking lots and spaces and drainage/storm water drains development in Kohima. As of May 2013, 52 percent of the work was completed and the remainder is expected to be completed by 2014.

The City Development Plan of Kohima city has been approved by the central government and development works areunderway.

The North Eastern Region Urban Development Programme (NERUDP) Phase-I is being implemented by the Ministry ofUrban Development (MoUD) with financial assistance from Asian Development Bank (ADB). It covers Kohima city in thestate.

Infrastructure development of Kohima city is underway with a funding of US$ 62.5 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 wastemanagement, drainage and landslip protection, transportation, slum and community up-gradation.

The state earmarked a budgetary outlay of US$ 144.7 million for several urban development projects during the 12th Five

Year Plan.

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


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Educational infrastructure (2011-12)

Universities 3

Colleges 56

Theological colleges 24

Industrial Training Institutes 8

Primary schools 2,350*

Upper primary schools 476*

Nagaland has a literacy rate of 80.1 per cent according tothe provisional data of Census 2011; the male literacy rateis 83.3 per cent and the female literacy rate is 76.7 per cent.

The Nagaland University (NU) offers bachelors, mastersand doctoral degrees in science, humanities & education,social science, engineering & technology and management.

Directorate of Technical Education was established in July2009 to focus on technical education.

Major activities of the Department of Higher Educationinclude awarding scholarships, construction of academicand other buildings, employing quality manpower andproviding them regular training. Budget of the departmentfor 2011-12 was US$ 13.85 million.

In May 2013, the state government signed an MoU withVision University, Republic of Korea, to upgrade the skills ofthe youth and create new opportunities through studentexchange programs.

Source: Department of Higher Education Annual AdministrativeReport 2011-12, Government of Nagaland, Census 2011 (provisional data)

University Grants Commission, District Information System for Education (DISE) AnalyticalTables 2010-11, Planning Commission - Annual Report 2011-12, Government of India

*As of 2010-11,MoU: Memorandum of Understanding

Literacy rates (%)

Literacy rate 80.1

Male literacy 83.3

Female literacy 76.7


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Sources: Nagaland State Action Plan on Climate Change,Government of Nagaland website, www.nagaland.nic.in

Department of AYUSH, Ministry of Health & Family Welfare,

Government of India*As of August 2011

Health indicators (2011)

Birth rate* 16.1

Death rate* 3.3

Infant mortality rate** 21

As of March 2012, the state had 11 district hospitals, 126primary health centres, 396 sub-centres, 21 communityhealth centres and 11 mobile medical units.

As of August 2011, the state had 204 ayurvedic andhomeopathic dispensaries and hospitals.

Community participation in healthcare services has led tobetter maintenance and up-gradation of medicalinfrastructure in the state.

Sources: Sample Registration System (SRS) Bulletin 2012(www.censusindia.gov.in)

*Per thousand persons**Per thousand live births

Health infrastructure (As of March 2012)

Sub-centres 396

Primary health centres 126

Community health centres 21

District hospitals 11

Ayurvedic and Homeopathicdispensaries and hospitals

204*

Mobile medical units 11


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Nagaland is home to 16 different tribes. Each tribe has its own weaving techniques, unique designs, colours, costumes andaccessories.

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

The customs and traditions of the 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 daysin the first week of December.

The other festivals include Sekrenyi, Moatsu, Sukhrunhye Tsukhenye, Naknyulem, Tsokum, Mimkut, Bushu, etc.

Tourist locations in Nagaland include, Tizit, Chumukedima, Piphema, Zanibu Lake, Shilloi Lake, Dimapur, Kohima,Mokokchung, Longleng, Mon, Peren, Phek, Tuensang, Kiphire, Wokha and Zunheboto.

The state government is building a multi-disciplinary sports complex at Dimapur at an estimated cost of US$ 21.2 million.Furthermore, proposals to build tribal heritage centres in the state are also underway.


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Nagaland Industrial Development Corporation (NIDC) isresponsible for the development of industrial infrastructurein the state.

Promoted by NIDC, the Export Promotion Industrial Park(EPIP) at Dimapur has received formal approval as aSpecial Economic Zone (SEZ) for agro and food

processing.

A proposed multi-product SEZ spread across 400 hectaresin Dimapur has received formal approval.

An industrial growth centre (IGC) has been developed inGaneshnagar near Dimapur. It has supporting infrastructuresuch as water supply system, bank, post office, policestation, etc.

Industrial infrastructure

Border Trading Centre with Myanmar

Exhibition facilities for national and international fairson handloom products

Infrastructural development schemes for districts in

the No Industry category


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Urban haats have been established in Dimapur, whichprovide market outlets for various trades.

A mini tool-room and training centre has been establishedat Dimapur.

The state has established various MSME industrial clusters,

mainly in Kohima, Wokha and Mokokchung districts.

An integrated infrastructure development centre (IIDC) wasinaugurated at Kiruphema in Kohima. The Longnak valley inthe Mokochung district is being considered for a similarproject.

North Eastern Industrial Consultants Ltd (NECON) wasestablished by financial institutions and banks to provide

assistance and professional services to entrepreneurs inthe state. NECON assists in preparation of project reports,feasibility reports and surveys.

Industrial infrastructure Units

District industries centre (DIC) 11

Sub-DICs 6

International border trade centres 5

SEZ (agro & food processing) 1

Old industrial estate, Dimapur 1

New industrial estate, Dimapur 1

Mini industrial estates 2

Growth centres 6

Industrial zones 12

Sources: National Skill Development CorporationSEZ: Special Economic Zone,

MSME: Micro, Small and Medium Enterprises


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The natural resources, climatic conditions and policyincentives in Nagaland support investments in industriesrelated to bamboo, horticulture, sericulture, tourism andagro-processing.

Other promising sectors in the state include paper and pulpprocessing, minerals and mining, and petrochemicals.

The state adopted a cluster development approach,developing the cluster areas in proximity to the resources.

Nagaland Industrial Development Corporation (NIDC) isresponsible for the development of industrial infrastructure inthe state.

An export promotion industrial park is located in Dimapur

and it provides industrial plots as well as ready to builtstandard design factories, a state of the art conventioncentre with hi-tech communication services and secretarialservices, besides other facilities.

Key industries in Nagaland

Bamboo

Agriculture and allied industries

Horticulture

Sericulture

Minerals and mining

Handloom and handicrafts

Tourism


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Source: Ministry of Micro, Small & Medium Enterprises,Government of India

MSME clusters inNagaland

District Principal products Total units

Fabrication and generalengineering

Kohima

Grill, gate, shutter, welding

27

Mokokchung 25

Handloom cluster

Kohima Local loom, handloom 50

Longmisa, Mokokchung Cloths, cot, shawl, mekila 20

Bee-keeping Kohima Honey products 45

Cane & bamboo cluster Khar, MokokchungCane chair, table, bamboo mat,

basket, bag25

Pottery cluster Changki, Mokokchung Pot, vase, decorative design items 15

Stone cluster WokhaStone crushing, stone chips,

boulder25


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Nagalands bamboo growing stock, covering 448,000 ha of land and comprising 22 species, is about 5.0 per cent of the totalstock in the country. During the 11th Five-Year Plan period, the state harvested 4.5 million tonnes of bamboo under its missionmode programmes.

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

Nagaland Bamboo Development Agency (NBDA) is the nodal office that coordinates with other offices for all bamboo-relatedresearch, 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 potential 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 andapplication.


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

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

The state harvested 1.5 million flowers in 2012-13, with roses accounting for more than one-fifth of the total harvest. Other

flowers cultivated in the state include gerbera, anthurium and orchids.

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 tallestRhododendron tree in the world.

The annual turnover of floriculture business in the state is estimated at around US$ 2 million.


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Floriculture projects in Nagaland

As part of the Floriculture Project at Satsuphen, Wokha, the ground is being harvested for quality liliums;it is among the successful projects in the state.

A low-cost lilium project has also been undertaken at Mokokchung, Chuchuyimpang.

The Model Floriculture Centre for Roses and Carnations at Yisemyong produces world-class roses andcarnations, which are spread over an area of about 38 acres. The centre cultivates eight varieties ofcarnations, namely Accardi, Master, Schabert, Diena, Star, Varna and Dalila.

Niathu Garden in Kohima is known for cultivating lilium throughout the year.

The floriculture project at Chumukedima, Dimapur, which is spread over an area of 4000 sq m, growsaround 40,000 anthurium plants of 11 varieties.

Akruzo Putstire, Sovima, is the biggest anthurium grower in Nagaland.

Source: National Skill Development Corporation


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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 an Agro and Food Processing SEZ inDimapur.

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


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Forest area occupies 52 per cent of the states total land area. Out of the total land area of 1.7 million hectares, 93,231.4hectares is irrigated. The states food grain production totalled 570,440 tonnes in 2011-12.

The state government has proposed an outlay of around US$ 406.8 million for agriculture and allied sectors developmentduring the 12th Five Year Plan.

NEDFI subsidises up to 25.0 per cent of the project cost (for project costs of up to US$ 54,861 for individuals and US$

109,721 for partnerships and companies) and arranges for soft loans to promote enterprises in the agri-business sector.

Source: Annual Plan 2013-14, Government of Nagaland,Business Knowledge Resources, Government of India,

NEDFI: The North Eastern Development and Finance Corporation Ltd


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Nagaland has immense potential to produce organic honey and pollen due to its rich biodiversity, traditional knowledge andpractice of beekeeping, and numerous honeybee species.

The state is estimated to have potential of producing 15,000 MT of honey and 100 MT of wax, which together could generatean income of around US$ 100 million annually.

Nagaland Beekeeping and Honey Mission (NBHM) was established in 2007 to promote honey production in the state.

NBHM has set up a honey processing unit at Dimapur and established 17 common facility centres in the state. Moreover, ithas been involved in training, survey studies and marketing of honey.

The mission has developed 33,000 bee colonies with honey production reaching 350 MT in 2011-12 from 120 MT in 2006-07.

The state aims to improve honey production to 1,000 MT by the end of the 12th Five Year Plan and 5,000 MT by 2020.

NBHM also plans to train 30,000 people and provide 400,000 beehives to increase production in the state.

Source: Annual Plan 2013-14, Government of Nagaland,Nagaland Beekeeping and Honey Mission


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It is estimated that Nagaland has a potential for 1,000 MW of hydropower generation, but the installed hydropower generationcapacity in the state was 53.32 MW as of April 2013.

This provides an immense potential; investments are being invited by the state government in this area.

Under the central governments initiative of installing 50,000 MW hydropower in India, Central Electricity Authority hasprepared a pre-feasibility report of three hydropower projects in Nagaland with a total capacity of 330 MW.

IL&FS Infrastructure Development Corporation has been mandated for setting up of two hydropower plants DikhuHydropower Project (120 MW) and Dzuza Hydropower Project (8 MW).

To exploit the huge potential for hydropower generation in the villages, the New And Renewable Energy Department of theGovernment of Nagaland has identified 21 feasible sites for hydro projects at the micro- and mini-level.

The state government aims to commission 50 MW of hydro projects at the MSME scale by 2022.

Source: Government of Nagaland,MSME: Micro, Small and Medium Enterprises


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Salubrious climate, green hills, criss-crossing rivers,interspersed lakes, vibrant culture, colourful handicrafts andweavings, and numerous festivals make Nagaland a touristsparadise.

About 27,500 domestic and foreign tourists visited the stateduring 2011.

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

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

The preferred tourist destinations in the state are Kohima,Dimapur, Mokokchung, Longleng, Wokha, Kiphire,Zunheboto, Phek, Peren, Mon and Tuensang.

Total tourist arrivals in Nagaland (in 000)

22.4 22.2

27.5

2009 2010 2011

Source: Ministry of Tourism, Government of India


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Nagalands IT policy aims to increase the use of IT in the industrial and government sectors.

With a high literacy rate, affordable cost, strong English-speaking population, improved telecommunications connectivity andfavourable 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 ofComputer Courses (DOEACC) and Indira Gandhi National Open University (IGNOU) are provided through Community

Information Centres (CICs).

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

The Department of Information Technology & Communications of the Nagaland Government is engaged in the promotion andmanagement of information technology in the state. The department is undertaking development, operation and maintenanceof the Nagaland IT park project through public-private partnership (PPP).


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The Department of Sericulture of Nagaland is mandated to popularise sericulture in rural areas, generate employmentopportunities, introduce and impart latest technologies on sericulture, support marketing of sericulture products and promoteexports 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 thestate.

Agro-climatic conditions in the state are conducive for development of sericulture. Mulberry, muga, eri, oak-tussar, and silkare widely cultivated in Nagaland.

In 2011-12, the state produced around 297.5 metric tonnes (MT) of raw silk. The state aims to increase silk production to1,700 MT over the 12th Five Year plan period.

In 2011-12, total mulberry plantation area was around 495 hectares in the state.


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The handicraft and handloom sector in Nagaland has enormous growth potential due to the abundant availability of skilledlabour and raw materials, coupled with the rich cultural traditions the people. Handicraft and handloom products from thestate are renowned for their beauty and intricate design.

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

Bamboo crafts are being promoted as a part of the Bamboo Policy of the state.

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

Nagaland Handloom & Handicrafts Development Corporation Limited, was established in 1979. Its primary objectives areproduction development and promotion of handloom & handicrafts.


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Coal, limestone, nickel, cobalt, chromium, magnetite,copper, zinc, petroleum and natural gas are the majorminerals available in Nagaland.

The state has reserves/resources of coal in Borjan, Jhanzi-Disai, Tiesang and Tiru Valley coalfields; iron ore(magnetite), cobalt and nickeliferous chromite in Tuensang

district; and limestone in Phek and Tuensang districts.

This presents a huge untapped potential in the minerals andpetrochemicals industries.

Explorations are being carried out by Geology & MiningDepartment, Geological Survey of India, Oil and Natural GasCorporation Limited (ONGC), Atomic Minerals Division andCentral Ground Water Board.

Reserves/resources of minerals in Nagaland(as of March 2010)

Ore/mineral (Million tonnes)

Coal 315.4*

Cobalt ore 5

Chromite 3.2

Copper ore 2.0

Iron ore 5.2

Dunite 4.8

Limestone 1,037.8

Nickel ore 5

Source: Indian Bureau of Mines, *As of March 2011


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The state has more than 1000 million tonnes of high chemical grade limestone reserves in the eastern region.

Around 600 million metric tonnes of crude oil and more than 20 million tonnes of hydrocarbon reserves underneath seven oilbelts are spread across five districts of Nagaland are unexploited.

These reserves provide opportunities for establishing mineral resourcebased industries in the state.

Source: Indian Bureau of Mines


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Nagaland has rich flora and fauna, which support variousmedicinal plants. The agro-climatic conditions of DimapurMokokchung, Phek and Tuensang districts are suitable forgrowth and cultivation of medicinal and aromatic plants.

The state has identified 650 indigenous medicinal plants thatcould be cultivated and processed, including aconitum ferox,lemon grass, aconitum heterophyllum, aquilaria agallocha,artemiszia annua, dioscorea floribunda, gloriosa superba,hedychium spicatum, lycopodium clavatum, nardostachysjatamansi, panax-pseudoginseng, picrorhiza kurron, piperlongum, piper nigrum, podophyllum hexunddrum,pogostemon cablin, smilax china, tagetes minuta, taxuzbacata and valeriana wallichii.

The Department of Land Resources Development has takenup the programme for the development of medicinal and

aromatic plants through Bio-Resources Mission with a viewto encourage farmers for the cultivation of indigenousmedicinal and aromatic plants (MAP) on a commercial basis.

To conserve and promote medicinal plants in the state, thegovernment has set up herbal gardens at Dimapur, Wokha,Mon, Mokokchung and Kohima. During the 11th Five YearPlan period, 4,230 hectares of medicinal and aromatic plantswere developed in the state.

Herbal garden at Dimapur, Nagaland


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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 landNagaland Industrial Development

Corporation Limited

Site environmental approvalNagaland 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 ActExcise 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


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Agency Contact information

Ministry for Development of North Eastern Region

258, 1st Floor, Vigyan Bhavan Annexe, New Delhi- 110011Phone: 91-11-23022400/01

Fax: 91-11-2306 2754Website: mdoner.gov.in

Department of Industries & Commerce

Director of Industries & CommerceUpper Chandmari,

Kohima-797001, NagalandPhone: 91-370-228001

Fax: 91-370-221368E-mail: [email protected]

Nagaland Industrial Development Corporation

IDC HouseDimapur - 797112, Nagaland

Fax: 91-3862-26473

Email: [email protected]

Nagaland Handloom & Handicrafts DevelopmentCorporation

Post Box No 31, DimapurNagaland

Phone: 91-3862-224 591


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Cost parameter Cost estimate Source

Cost of land (per acre)US$ 50,000 to US$ 200,000 (inKohima and Dimapur)

Industry sources

Hotel costs (per room per night) US$ 15 to US$ 100 State Tourism website

Office space rent (2,000 sq ft) US$ 100 to US$ 800 per month Industry sources

Residential space rent (2,000 sq fthouse)

US$ 75 to US$ 300 per month Industry sources

Labour costs (minimum wages perday)

Unskilled: US$ 1.8Skilled: US$ 2.2 to US$ 2.4

Ministry of Labour and Employment,Government of India


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Nagaland Bamboo Policy 2004

To promote bamboo cultivation and bamboo-based industries in Nagaland.

To promote ecological security and economic growth through development and utilisation of thebamboo resources in the state.

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

To promote the North-eastern region as an attractive investment destination through concessionsand incentives.

Read more

Objective

IT Policy of Nagaland 2004

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

To facilitate and support the creation of sound IT infrastructure and skilled human resources inthe state.

Read more

Objectives
http://www.bambootech.org/subsubTOP.asp?subsubid=105&subid=37&sname=STATEhttp://assamgovt.nic.in/pdf/NEIIPP_2007.pdfhttp://itngl.nic.in/docs/It_Policy.pdfhttp://itngl.nic.in/docs/It_Policy.pdfhttp://assamgovt.nic.in/pdf/NEIIPP_2007.pdfhttp://www.bambootech.org/subsubTOP.asp?subsubid=105&subid=37&sname=STATE


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Nagaland State Industrial Policy 2000

To facilitate rapid and sustained industrial development of the state.

To enable entrepreneurs to generate substantial income and employment for the people ofNagaland.

Read more

Objectives
http://www.nagaland.nic.in/new_policy/investment.htmhttp://www.nagaland.nic.in/new_policy/investment.htm


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Average for the year

YearINR equivalent of one

US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

Exchange rates


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nagaland - august 2013

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