Largest hydropower potential in India

Indias pent-up demand for electricity could be addressed by the states potential 57,000 MW of hydropower capacity. Currently, 88 private sector projects with a total capacity of 31,587.5 MW are in the pipeline.

Railways as a new means of transport

The proposed 20 km Harmuti (Assam) to Naharlagun route, expected to be operational in 2013, would connect the state to the rest of India and provide huge trade and transport opportunities.

Orchid paradise

Arunachal Pradesh is home to 601 species of orchids or 52% of the species of orchids known in India, indicating a huge potential for attracting tourists, especially foreign tourists.

Carpet making

The states textile industry, including carpet making, enjoys a huge appeal. On account of the creativity, the states carpets have received national and international fame for their design and quality.

Largest state in North East

Arunachal Pradesh, with an area of 83,743 sq km, is the largest state in the North East. Its diverse topography also offers opportunities for non-timber based industries, including bamboo, cane and medicinal plants.
Source: Arunachal Pradesh Government website, Aranca research

2012-13

High economic growth Growing demand

The GSDP increased at a compound annual growth rate (CAGR) of 17.5 per cent* between 200405 and 201213, faster than Indias 15.6 per cent* growth. The state has considerable mineral reserves that offer huge potential. Due to its topography, the state has varied agro-climatic conditions suitable for the horticulture of flowers and aromatic and medicinal plants.

Huge hydropower potential

The hilly terrain and abundant rivers make the state a potential powerhouse of the Northeast The states hydropower potential is currently estimated at 57,000 MW or approximately 26% of Indias current power generating capacity

Pipeline
96 projects having a generation capacity of 47,000 MW

Hydropower generation capacity: 97.57MW

Advantage Arunachal Pradesh

Policy and fiscal incentives

Both the state and central governments offer huge fiscal and policy incentives for the development of thrust sectors. The State Industrial Policy, 2008, and Agriculture Policy 2001 support these activities. Additionally, the central governments North East Industrial and Investment Promotion Policy (NEIIPP), 2007, promotes investment

The engineering sector is delicensed; opportunities 100 per cent FDI is allowed in the The states location provides sector

International trade

opportunities for international trade with South countries Due toAsian policy support, such thereas was Myanmar, Bhutan and China. cumulative FDI of USD14.0 billion into Textiles and handicrafts from the state the sector over April 2000 February are in demand in neighbouring 2012, making up 8.6 per cent of total countries. FDI into the country in that period Recently, the state received approval for the first border haat along the IndoMyanmar border

* Calculated in Indian rupee terms

Naharlagun, Tawang, Rupa, Bomdila, Bhalukpong, Seppa, Ziro and Daporijo are some of the major towns in the state. Brahmaputra is the major river flowing through the state. Other smaller rivers include Kameng, Subansiri, Lohit, Tirap and Siang.

Parameters
Capital Geographical area (sq km)
Source: Maps of India

Arunachal Pradesh
Itanagar 83,743 16 17 1.4 0.72

Administrative districts (No) Population density (persons per sq km)* Total population (million)* Male population (million)*

Located in the Northeast of India, Arunachal Pradesh is the largest of the seven sister states. It shares its border with the neighbouring countries of Bhutan in the west, China (Tibet) in the north and north-east and Myanmar in the east and southeast. The Indian states of Assam and Nagaland border it in the south. The most commonly spoken languages are Assamese, Bengali and Hindi. English is the official language and primary medium of education in the schools.

Female population (million)*

Sex ratio (females per 1,000 males)* Literacy rate (per cent)*

0.66
920 67.0

Sources: Government of Arunachal Pradesh website, (http://arunachalpradesh.nic.in), Ministry of Development of North Eastern Region, *Provisional Data Census 2011

Parameter
Economy
GSDP as a percentage of all states GSDP Average GSDP growth rate (%)* Per capita GSDP (US$)

Arunachal Pradesh

All-States

Source

0.1 17.5 1,638.8

100 15.6 1,414.2

Planning Commission Databook, 2012-13, current prices Planning Commission Databook, 2004-05 to 2012-13, current prices Planning Commission Databook, 2004-05 to 2012-13, current prices

Physical Infrastructure
Installed power capacity (MW) Wireless subscribers (No) Broadband subscribers (No) National Highway length (km) Airports (No) 249.4 8,960,542^ 7,781 2,027 5^^ 225,133.1 867,803,583 15,050,000** 79,116 133 Central Electricity Authority, as of May 2013 Telecom Regulatory Authority of India, as of March 2013 Ministry of Communications & Information Technology, as of December 2012 Ministry of Road Transport & Highways, as of March 2013 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, ^^non operational

Parameter
Social Indicators
Literacy rate (%) Birth rate (per 1,000 population)

Arunachal Pradesh

All-States

Source

67.0 19.8

74.0 21.8

Provisional data Census 2011 SRS Bulletin (www.censusindia.gov.in), 2012

Investment
Outstanding investments (US$ billion) 205.1 10,498.3 CMIE (2012-13)

SRS: Sample Registration System

At current prices, the gross state domestic product (GSDP) of Arunachal Pradesh was US$ 2.34 billion in 2012-13. Arunachal Pradeshs GSDP grew at a compound annual growth rate (CAGR) of 17.5 per cent* from 2004-05 to 201213. This was faster than Indias total GDP growth of 15.6 per cent*.

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

2,338.6 2,322.9 1,916.2 1,576.2 1,238.7

CAGR 17.5%*
1,195.3 848.0 776.0 907.2

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Source: Planning Commission Databook, 2012-13 *Calculated in Indian rupee terms,

2012-13

At current prices, the net state domestic product (NSDP) of Arunachal Pradesh was US$ 2.14 billion in 2012-13. Arunachal Pradeshs NSDP at current prices grew at a CAGR of 17.6 per cent* between 2004-05 and 2012-13. This was much faster than Indias total NDP growth of 15.6 per cent*.

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

2,158.1 2,143.5

CAGR 17.6%*
1,132.4

1,783.6 1,442.3

709.2 776.6

1,095.2 831.5

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Source: Planning Commission Databook, 2012-13 *Calculated in Indian rupee terms, Note: CAGR - Compound Annual Growth Rate

2012-13

In 2012-13, the states per capita GSDP, at current prices, was US$ 1,638.8 as compared to US$ 647.7 in 2004-05. The per capita GSDP grew at a CAGR of 15.0 per cent* between 2004-05 and 2012-13.

Per capita GSDP (in US$)

CAGR 15.0%*
1,176.3 931.7 944.9 722.9 647.7 691.8 1,662.8 1,638.8 1,400.7

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Source: Planning Commission Databook, 2012-13 *Calculated in Indian rupee terms, Note: CAGR - Compound Annual Growth Rate

2012-13

The states per capita NSDP in 2012-13 was US$ 1,502.1 as compared to US$ 591.9 in 2004-05. The per capita NSDP increased at an average rate of 15.0 per cent* between 2004-05 and 2012-13.

Per capita NSDP (in US$)

CAGR 15.0%*
1,076.4 853.7 863.8 662.5 592.0 633.6 1,544.8 1,502.1 1,303.8

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Source: Planning Commission Databook, 2012-13 *Calculated in Indian rupee terms, Note: CAGR - Compound Annual Growth Rate

2012-13

The primary and tertiary sectors dominate the composition of GSDP of the North Eastern state. In 2012-13, the primary sector contributed 46.4 per cent* to the states GSDP at current prices, followed by the tertiary sector (29.1 per cent*) and the secondary sector (24.5 per cent*). At a CAGR of 20.8 per cent*, the primary sector has been the fastest growing sector among the three sectors from 2004-05 to 2012-13. The growth was driven by agriculture, forestry and logging. The tertiary sector grew at a CAGR of 15.7 per cent* between 2004-05 and 2012-13. The growth has been driven by trade, hotels, real estate, banking, insurance, transport, communications and other services. The secondary sector grew at a CAGR of 14.8 per cent* between 2004-05 and 2012-13.

GSDP composition by sector

CAGR**
33.0% 15.7%* 29.1%

24.5% 29.5% 14.8%*

37.4%

20.8%*

46.4%

2004-05 Primary Sector Secondary Sector

2012-13 Tertiary Sector

Source: CMIE *Calculated in Indian rupee terms, Note: CAGR - Compound Annual Growth Rate

Cereals, oil seeds, ginger, potato, sugarcane and pineapple are some of the key agricultural products of the state. In 2009-10, the total food grain production in the state was 325,000 metric tonnes. The total paddy (rice) production in the state was 233,992 metric tonnes and total maize production in the state was 64,714 metric tonnes in 2010-11. Major cereal crops of the state are rice, wheat, maize and millet.

Crop
Paddy (rice) Vegetable Maize Ginger Potato Pineapple Oil seeds Sugarcane Millet

Annual production 2010-11 (000 metric tonnes)

233.9 98.1 64.7 52.3 35.8 34.4 29.2 28.9 20.0

Apple

10.0

Source: NEDFI Databank, Ministry of Agriculture, Indian Horticulture Database 2011, National Horticulture Board

According to the Department of Industrial Policy & Promotion (DIPP), the cumulative FDI inflows from April 2000 to December 2012 amounted to US$ 78 million*. In 2012-13, the outstanding investments in the state were US$ 205.1 billion. Of the total outstanding investments in 2012-13, the electricity sector accounted for around 94.8 per cent followed by the services sector (5.2 per cent).
*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 sectors (2012-13)

5.2%

Electricity

Services

94.8%

Source: CMIE

Arunachal Pradesh has a road density of 25.74 km per 100 sq km, as of March 2011; while the national average is 115 km per 100 sq km. As of March 2013, about 2,027 km of national highways run through Arunachal Pradesh, connecting the state with the rest of India.

Under Arunachal Pradesh Package for Roads & Highways, in 2009, the central government approved projects for improving 1,472 km of national highways and 847 km of state roads. This is under the Prime Ministers package.
Source: Maps of India

Arunachal Pradesh has about 12,169 km of major district roads. Arunachal Pradesh State Transport Services was established in 1975. Its fleet strength rose from two buses to 233 buses, which are now operating on 251 routes connecting all the motorable and remotest administrative centres of the state. It also connects the adjoining states of Assam and Meghalaya.

To provide impetus for growth, as per the Special Accelerated Road Development Programme for North Eastern region (SARDP-NE), a total of 10,141 km of roads are to be re-developed to improve the connectivity of the district headquarters and the remote places of the Northeast region with state capitals.

The SARDP-NE programme envisages providing road connectivity to all the district headquarters of the Northeast region with minimum two-lane highway standards. Under the programme, the strategic 2,400 km TransArunachal Highway Project (National Highway 229), which will link Tawang to Mahadevpur, has been announced. The project is expected to be completed by 2017.

Road infrastructure
National highways (km)

Road length (km)

2,027

Major district roads

Rural roads Total

12,169
5,455 21,555

Sources: Arunachal Pradesh State Action Plan on Climate Change, Government of Arunachal Pradesh, Ministry of Road Transport & Highways

In the 1980s, air services were provided by Vayudoot, a JV of Indian Airlines and Air India, which ceased operations in 1997. In December 1995, the state government introduced passenger flight services with a fleet of two Pawan Hans helicopters: a nine-seater Dauphin helicopter and a 24seater MI-172 type helicopter. Initially operating on the Naharlagun (close to Itanagar) to Guwahati and Mohanbari (both in Assam) route, the service now also connects major local towns including Tawang, Ziro, Pasighat, Daporijo, Along, Yingkiong, Roing, Tezu, Khonsa, Changlang, Namsai and Anini. A greenfield airport has been proposed near the capital, Itanagar, for which environmental clearance has been received in April 2010. Ministry of Civil Aviation has also planned to operationalise airports at Daporijo and Tezu. In a major thrust, the proposed 20 km Harmuti (Assam) to Naharlagun route is expected to be operational in 2013, connecting the state to the rest of India. In addition, the Rupai-Parsuramkund railway track has been proposed as a national project to develop Parsuramkund as a Hindu pilgrimage site.

Domestic airport^ Inter-state helicopter service*

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

As of May 2013, Arunachal Pradesh had a total installed power generation capacity of 249.44 MW. It consisted of 129.62 MW under central utilities, 119.79 MW under state utilities and 0.03 MW under the private sector. Hydropower is the major source of electricity generation in the state, contributing around 97.57 MW of installed capacity, followed by 103.94 MW of renewable energy resources and 47.93 MW of thermal power. Arunachal Pradesh has been focusing on developing its huge hydropower potential. The state set up the Department of Hydro Power Development in 2003 for the development of micro/mini/small hydro projects, renovation and modernisation of existing projects, and survey and investigation of new potential sites for hydropower development. There are 63 projects currently under operation having a capacity of 35.19 MW.

Installed power capacity (MW)

249.4

249.4

201.9
180.1

213.3

213.7

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14*

Source: Central Electricity Authority *As of May 2013 Department of Hydro Power Development, Arunachal Pradesh

As of December 2011, Arunachal Pradesh had 107 telephone exchanges and 342,113 subscribers of Bharat Sanchar Nigam Limited (BSNL). The state had a tele-density of 27.6 per cent of BSNL subscribers, as of December 2011. Overall tele-density is 67.78^.

Telecom infrastructure (March 2013)

Wireless subscribers^ Wire-line subscribers^ BSNL subscribers Tele-density of BSNL subscribers (per cent) Telephone exchanges Post Offices 8,960,542

189,884
342,113* 27.6* 107* 295**

The Universal Service Obligation Funds (USOF)-supported Augmentation, Creation and Management of Intra-District SDHQ-DHQ OFC^ Network scheme of the Department of Telecom, Government of India, is creating an optical-fibre network with bulk bandwidth. BSNL is the main contractor for this network setup. As of April 2013, the state had 295 post offices.
^SDHQ: Sub-District Headquarter DHQ: District Headquarter OFC: Optical-Fibre Cable

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 for March 2013, *As of December 2011, **As of April 2013

Some of the major telecom operators in Arunachal Pradesh

Bharat Sanchar Nigam Limited (BSNL), Bharti Airtel Aircel Limited, Vodafone, Reliance Communications, Idea Cellular
Source: Telecom Regulatory Authority of India

Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), three projects costing US$ 39.58 million have been sanctioned for Itanagar, the state capital. Projects for water supply, solid-waste management and urban transport have been identified for development under the JNNURM. The urban transport project was approved in 2009 while two other projects on water supply and solid-waste management were approved in 2007. As of March 2013, US$ 28.2 million of funds have been released for the projects. Under the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), US$ 8.63 million has been allocated for development of roads, solid waste management and storm drainage systems.

Source: JNNURM, Ministry of Urban Development, Government of India

Arunachal Pradesh has a literacy rate of 67.0 per cent according to the provisional data of Census 2011; the male literacy rate is 73.7 per cent and the female literacy rate is 59.6 per cent. The state has started the Sarva Shiksha Abhiyan (SSA) the national flagship programme on education to achieve universal elementary education in a mission mode. As of March 2012, around 6,153 teachers had been recruited and over 341,313 children (between 6-14 years of age) were enrolled under the SSA. In 2011-12, 19,548 students were enrolled in 31 institutes of higher education. Among the students enrolled in higher education courses, 45.2 per cent were girls. There is a proposal to establish five degree colleges, seven new polytechnics, and five new technical/professional colleges in the state. The NE states (excluding Assam), with an HDI value of 0.573, ranked sixth best in India on the Human Development Index in 2007-08. In 1999-2000, they were ranked ninth with an HDI of 0.473.

Literacy rates (%)

Literacy rate Male literacy Female literacy 67.0 73.7 59.6

Source: Census 2011 (provisional data), Directorate of higher and technical education

Higher education infrastructure (As of January 2012)

Universities/deemed universities Degree colleges Professional/technical colleges Polytechnic National Institute of Technology 2 16 10 2 1

Major higher educational institutes in Arunachal Pradesh

North Eastern Regional Institute of Science and Technology*, Nirjuli National Institute of Technology, Yupia Jawaharlal Nehru College, Pasighat Industrial Training Institute (Roing, Daporijo and West Kameng district) College of Horticulture and Forestry^

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

Source: Directorate of Higher and Technical Education, Government of Arunachal Pradesh *Deemed university ^Under the Central Agricultural University

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. As of March 2011, there were 14 district hospitals, 48 community health centres, 97 primary health centres and 286 sub-centres in the state.

Health infrastructure in Arunachal Pradesh (March 2011)

District hospitals Community health centres Primary health centres 14 48 97

Sub-centres
Ayurvedic hospitals

286
11* 2* 1*

Health indicators of Arunachal Pradesh (2011)

Birth rate (per thousand persons) Death rate (per thousand persons) Infant Mortality Rate (per thousand live births) 19.8

Ayurvedic dispensaries Homoeopathic hospitals

Homoeopathic dispensaries

55*

5.8
32
Source: Department of AYUSH, Ministry of Health & Family Welfare, Government of India *As of August 2011

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

There are 26 major tribes and many sub-tribes in Arunachal Pradesh who have rich cultural heritage and follow distinct languages, costumes and festivals. Varied culture of the tribes are reflected in 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. 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. 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).

Source: Tourism Department, Government of Arunachal Pradesh

Arunachal Pradesh has 12 industrial estates located in different districts and spread over a total area of 51.8 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. In addition, the state government has also notified integrated infrastructure development centres, industrial growth centres and industrial areas to support industrial growth.

Notified industrial estates Location

Deomali Khonsa Pasighat Tawang Tippi Wanghoo Naharlagun Chandranagar Namsai Changlang Town Khachang Bam District Tirap Tirap East Siang Tawang West Kameng West Kameng Papumpare Papumpare Lohit Changlang Changlang West Siang

Source: Department of Industries, Government of Arunachal Pradesh

Notified integrated infrastructure development centres Location

Deomali Tippi Dirang Iduli Balinong

Notified industrial areas Location

Bhalukpong Roing

District
Tirap West Kameng

District
West Kameng Dibang Valley Lohit Papumpare

West Kameng Dibang Valley Changlang Tezu Banderdewn

Source: Department of Industries, Government of Arunachal Pradesh

The state government has set up district industries centres (DICs) in all districts. These DICs play a vital role in industrial development by providing services to the entrepreneurs viz., 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, liaison with all development departments and financial institutions to provide assistance to the prospective entrepreneurs. 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, communications, etc., under public private partnership. Food processing industries. Engineering and allied industries (rolling mill, steel mill, etc). Tourism

The resources, policy incentives and climate in the state support investments in mining and mineral products (including cement), tissue culture and floriculture, plantation crops (tea, rubber, etc.) and agro-based industries. North Eastern Development Finance Corporation Limited is engaged in catalysing the industrial growth of the Northeastern region (including Arunachal Pradesh) by providing counseling, timely advice and assistance for building quality enterprises.

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.

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 per cent excise duty and income tax exemption, capital investment subsidy, interest subsidy and insurance premium reimbursement. The Department of Industries has set up District Industries Centres (DICs) and Sub-District Industries Centres (SubDICs) for the industrial development of small scale, tiny and 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

As of May 2013, Arunachal Pradesh had a total installed power generation capacity of 240.04 MW. Around 40.6 per cent of Arunachal Pradeshs installed power generation capacity was based on hydro energy (97.57 MW). The Department of Hydropower Development, Arunachal Pradesh, is wholly entrusted with the design, construction, operation and maintenance of hydropower projects in the state. Under NEIIPP, 2007, power generating plants get incentives as governed by the provisions of Section 81A of the Income Tax Act. In addition, power generating plants (based on both conventional and non-conventional sources) with a capacity of up to 10 MW are eligible for capital investment subsidy, interest subsidy and comprehensive insurance. On account of its hilly terrain and abundant rivers, Arunachal Pradesh is estimated to have hydropower potential of over 57,000 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.

Some of the key players

NTPC Ltd NHPC Ltd North Eastern Electric Power Corporation (NEEPCO) Bhilwara Energy Ltd

NTPC Ltd

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

NHPC Ltd

NHPC Limited (formerly known as National Hydroelectric Power Corporation Limited) is a public-sector major in hydroelectric power generation. The company already has four ongoing projects with an installed capacity of 6,400 MW. Two of these are located in the Tawang district, one in the Dibang district and one in Subansiri Lower district.

North Eastern Electric Power Corp (NEEPCO)

North Eastern Electric Power Corporation is a central PSU involved in power generation in Northeastern region. It is one of the oldest power generating companies and controls 55.0 per cent of the regions installed capacity. The company has 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).

Bhilwara Energy Ltd

Bhilwara Energy Limited is a part of LNJ Bhilwara group. The company has signed three MoUs for development of hydropower projects in the state at Tawang, Angoline and Malinye. The companys revenues stood at US$ 1.03 billion in 2010-11.

Hydro power projects in the North East

Central sector
No of schemes Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Tripura Sikkim Total

Private
No of schemes

State/unallocated
No of schemes

Installed capacity (MW)

4,400 1,566 85 2,196 730 8,977

Installed capacity (MW)

31,587.5 974 165 2,531 35,257.5

Installed capacity (MW)

10,990 360 573 1,155 80 190 90 13,438

Total schemes

Total installed capacity (MW) 46,977.5 360 2,139 2,214 2,276 355 3,351 57,672.5

3 2 1 5 2 13

88 5 1 20 114

5 5 7 9 1 2 1 30

96 5 9 15 6 3 23 157

Source: Ministry of Power, Annual Report 2011-12

Arunachal Pradesh has been identified as the powerhouse of the country. In the Twelfth Five Year Plan, a total of 96 hydropower projects having a generation capacity of 47,000 MW were announced for the state. Three projects with an aggregate generation capacity of 4,400 MW are in the central sector. There are 88 projects with a capacity of 31,587.5 MW in the private sector. Four of the biggest projects currently under construction include the 2,000 MW Subansiri Lower, 600 MW Kameng, 110 MW Pare and 1,750 MW Demwa Lower hydroelectric projects. These projects are expected to be completed between 2013 and 2017. 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. Arunachal Pradesh would get 12 per cent power from each project for free, thus making it a power surplus state and enabling it to generate revenues through sale to other states.

The State Industrial Policy, 2008, of Arunachal Pradesh lists mineral-based industries (such as ferro-alloys, cement plants, etc.) as thrust sectors. The states mining activities are managed by the Arunachal Pradesh Mineral Development and Trading Corporation Limited (APMDTCL). During 2010-11, mineral production generated US$ 78 million for the states exchequer. Total extraction of coal since April 2007 to February 2012 was one million tonnes. In 2010-11, total coal production in the state was 299,000 tonnes.
Source: Maps of India

Reserves/resources of minerals in Arunachal Pradesh (as of March 2011)

Ore/mineral
Coal Dolomite

Arunachal Pradesh has considerable mineral reserves, and 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; limestone in Dibang Valley, Lohit, Upper Siang and Upper Subansiri districts.

Reserves (million tonnes)

90.23 77.83* 482.79* 72.75* 20.01* 5.27*

Limestone Graphite Fuller's earth Quartzite

Sources: Indian Bureau of Mines, *As of March 2010

Major agro and forest based industries in the state relate to tea, fruit, non-timber and plywood industries. Around twothirds of the states population is dependent on agriculture. The state governments New Agricultural Policy 2001 aims to achieve higher economic growth and create job opportunities for the rural unemployed. 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 and medicinal plants. The industry is characterised by many regional players; several units have been set up by Arunachal Pradesh Forest Corporation (APFC), a government organisation. APFC has taken up a project on capacity building for production of bamboo-based industrial intermediates at Poma village near Itanagar.

The State Industrial Policy, 2008, of Arunachal Pradesh lists agriculture and non-timber forest produce-based industries as thrust sectors.

Arunachal Plywood Industries Limited

Arunachal Plywood Industries Limited (APIL) is among the oldest plywood manufacturing units in the country. The company manufactures bamboo boards, prefabricated houses, pallets/crates and bamboo mat boards. The pre-fabricated structures are not only eco-friendly, but also cost effective and long lasting. The company has its manufacturing unit at Namsai, Arunachal Pradesh.

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. Arunachal Pradesh is an "Orchid Paradise, accounting for 601 species of orchids or 52 per cent of the species known in India. An orchid research centre has been established at Tipi to promote orchid conservation, research and development. The popular tourist spots include Parashuram Kund, Tawang monastery, Bhismaknagar, Malinithan, Akashiganga, Namdapha, Itanagar and Bomdila.

In 2009-10, Arunachal Pradesh had received financial assistance from the central government for developing sustainable rural tourism. The project aims at promoting traditional rural art, craft, textile and culture to develop the rural economy.

Arrivals of domestic tourists in Arunachal Pradesh (in 000s)

227 195 149 233

91

The State Industrial Policy, 2008, provides incentives for developing tourism infrastructure, with a special focus on public-private partnerships in tour operations, hotels and resorts. The central governments Look East Policy is initiating tourism as a means to increase trade with other South East Asian countries. Arrival of domestic tourists in the state, has increased at a CAGR of 26.5 per cent between 2007 and 2011.

2007

2008

2009

2010

2011

Source: Ministry of Tourism, Government of India

Textile is a grass-roots industry in Arunachal Pradesh and provides employment to mainly 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, curtain cloth, etc. Carpet making is one of the important occupations in the districts of Tawang, West Kameng, Changlang and Upper Siang. The states carpets have received national and international repute owing to their quality. The carpet weaving industry is promoted through the Government Craft Centre. Sericulture is also practised in the state; in 2011-12, the state produced about 20 Metric Tonnes of raw silk. To give a major thrust to this business, Arunachal Pradeshs government is reorganising the existing seed production centre by providing additional operational buildings and technical staff. It is also supporting rearers by supplying the required seeds, planting materials and rearing appliances, among others. The Department of Textile & Handicraft(s), Arunachal Pradesh, supports the textile sectors development. It provides selfemployment opportunities to weavers and artisans through several development projects. There are 88 crafts centres imparting training in different trades. The department has 15 Emporia, three mini sales Emporia and five showrooms for marketing handloom and handicraft products manufactured by local artisans. Under the Integrated Handloom Development Scheme, 19 clusters were taken up in the state between 2007-08 and 201112.
Source: Department of Textile & Handicraft(s), Arunachal Pradesh Central Silk Board, Ministry of Textiles Government of India

S No
1 2 3

List of approvals and clearances required

Incorporation of company/partnership firm/co-operatives Registration, Industrial Entrepreneurs Memorandum (IEM), industrial licenses

Concerned department of state

Registrar of Companies

Department of Industries Permission for land use Arunachal Pradesh Industrial Development and Financial Corporation Limited / Department of Industries Ministry of Environment and Forests, Government of India; Arunachal Pradesh State Pollution Control Board (APSPCB) Department of Tax and Excise, Government of Arunachal Pradesh

Allotment of land

5 6 7 8

Site environmental approvals No-objection certificate and consent under Water and Pollution Control Act Registration under States Sales Tax Act and Central and State Excise Act Commercial taxes

Source: Government of Arunachal Pradesh

S No
9 10 11 12 13 14

List of approvals and clearances required

Sanction of power Power feasibility Power connection Approval for construction activity and building plan Water and sewerage clearance Water connection

Concerned Department of State

Department of Power, Arunachal Pradesh

Respective District Municipality Department of Public Health Engineering

Source: Government of Arunachal Pradesh

Agency

Description
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: a) Formulation of Industrial Policy and setting up of industrial estates/growth centres/ district industries centres. b) Registration and regulation of industries. c) Providing financial assistance to small scale and other industries. d) Distribution of scarce and indigenous raw-materials to different industrial units. e) Apprenticeship Training Programs through ITIs and other industrial development related activities. Incorporated under the Companies Act, 1956, in August 1978. Set up to promote and finance industries in Arunachal Pradesh. Development of infrastructure facilities (currently being handled by the Department of Industries, expected to be handed over soon). Implement schemes of assistance of National Scheduled Castes and Scheduled Tribes Finance and Development Corporation Limited (NSFDC). 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. APEDA is also the state nodal agency for projects connected with Clean Development Mechanism (CDM).

Department of Industries

Arunachal Pradesh Industrial Development and Financial Corporation Limited (APIDFC)

Arunachal Pradesh Energy Development Agency (APEDA)

Agency

Description
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. 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. Under the administrative control of the Ministry of Development of North Eastern Region (DoNER), Government of India Develop and promote indigenous crafts of the region Establish and operate sales centres for improving marketability of goods Providing financial, technical and other assistance to craftsmen, weavers, cooperatives and other establishments Provide training for upgrading traditional skills

North Eastern Development Finance Corporation Limited (NEDFi)

North Eastern Handicrafts and Handloom Development Corporation (NEHHDC)

Agency

Contact information
Government of Arunachal Pradesh Udyog Sadan, ltanagar -791111 Phone: 91-360-2212 323/ 2214 456 Fax: 91-360-2211 569 E-mail: dir-industry-arn@nic.in C Sector, Near Petrol Pump Itanagar - 791111 Phone: + 91-360-2211 763, 2212 012 Urja Bhawan, Tadar Tang Marg Post Box No 141, Itanagar-791111 Arunachal Pradesh Phone: 91-360-2211 160, E-mail: apedita@sancharnet.in

Department of Industries

Arunachal Pradesh Industrial Development and Financial Corporation Limited(APIDFC)

Arunachal Pradesh Energy Development Agency (APEDA)

North Eastern Development Finance Corporation Ltd (NEDFi)

NH-52A, Main Road, E-Sector, Itanagar -791111, Arunachal Pradesh Phone/Fax: 91-360- 2217 694

Cost parameter
Hotel costs (per room per night) Power cost (per kWh) Labour cost (minimum wages per day) Water (per 1,000 litres)

Cost estimate
US$ 8 to US$ 75 Commercial: US 7.9 cents to US 9.9 cents Industrial: US 6.2 cents to US 8.3 cents Unskilled: US$ 3.0 to US$ 3.4 Skilled: US$ 3.2 to US$ 3.6 Commercial and industrial: US 15.7 cents

Source
State Tourism website Department of Power, Government of Arunachal Pradesh Ministry of Labour and Employment, Government of India Industry sources

State Industrial Policy 2008

Objectives

To facilitate and promote the growth of industry, employment and investment in the state. To promote export oriented industrial units

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Hydro Power Policy 2008 Objectives

To 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. To accelerate the pace of hydropower development through participation of both the central public sector undertakings and private power developers, as also by formulating public private partnerships. To provide for creation of social and development infrastructure through hydropower development.

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Small Hydro Power (SHP) Policy 2007

Objective

To facilitate and promote the growth of small hydropower plants through private participation, thereby increasing employment opportunities in the state.

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

To promote the Northeast region as an attractive investment region through concessions and incentives.

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Agriculture Policy 2001

Objective

To achieve higher economic growth and create job opportunities for the rural unemployed through agriculture and allied sectors.

Read more

Exchange rates Year

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

INR equivalent of one US$

44.95 44.28 45.28 40.24 45.91 47.41 45.57 47.94 54.31
Average for the year

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