Unexploited natural resources

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

Hydropower generation potential

Nagalands estimated hydropower generation potential is 1,000 MW, while the installed capacity 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 5.0 per cent of the total stock in the country. Nagaland also has enormous potential in raw silk production, and it aims to increase silk production by five times to 1,700 MT over the 12th Five-Year plan period (2012-17).

Floriculture and horticulture

The agro-climatic conditions in Nagaland provide commercial opportunities for floriculture and 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

2012-13
Hydropower generation capacity: 53.32 MW

Favourable location and Growing demand abundant resources

Nagalands agro-climatic conditions favour agriculture, horticulture and forestry, offering immense potential in these areas. The state has considerable resources of natural minerals, petroleum and hydropower.

Institutional support
The state provides institutional support through various central and state government agencies viz., North East Council, Ministry of Development of North Eastern Region and Nagaland Industrial Development Council.

Potential
The states hydropower potential is 1,000 MW

Advantage: Nagaland

Availability of skilled labour

Nagaland has a high literacy rate of 80.1 per cent. A majority of the population in the state speaks English, which is the official language of the state. The state has strong focus on technical and medical education.

The engineering sector is delicensed; The state offers policy and 100 per cent FDIexcellent is allowed in the fiscal sectorincentives for agro-based and cumulative FDI of USD14.0 billion into the sector over April 2000 February Transport and up communication 2012, making 8.6 per cent of total connectivity is good. Industrial centres FDI into the country in that period

Policy and infrastructure

forest-based industries, horticulture, food processing, mining, tourism Due to policy support, there wasand the handlooms and handicrafts sectors.

and special economic zones (SEZs) are being developed to enhance the marketability of products.

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
Capital Geographical area (sq km) Administrative districts (No) Population density (persons per sq km)*

Nagaland
Kohima 16,579 11 119 1.9 1.0 0.9 931 80.1

Nagaland is located in the Northeast of India. The state is surrounded by Myanmar in the east, Arunachal Pradesh in the north, Assam in the west, and Manipur in the south. English is the official language and the medium of education. Sixty different dialects of Sino-Tibetan language are spoken in the state.

Total population (million)* Male population (million)* Female population (million)* Sex ratio (females per 1,000 males)* Literacy rate (%)*

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

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

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

Nagaland

All-States

Source

0.14 10.9 1,179.8

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, 2012-13, current prices

Physical Infrastructure
Installed power capacity (MW) Wireless subscribers (No) Broadband subscribers (No) 116.8 8,960,542^ 5,131 225,133.1 867,803,583 15,050,000** 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

National Highway length (Km) Airports (No)

494 1

79,116 133

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

Parameter Social Indicators

Literacy rate (%) Birth rate (per 1,000 population)

Nagaland

All-States

Source

80.1 16.1

74.0 21.8

Provisional data Census 2011 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

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 growth rate (CAGR) of around 10.9** per cent between 2004-05 and 2012-13*.

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

CAGR 10.9%**
2.0 1.3 1.5 1.6 2.1 2.5 2.2 2.6 2.5

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

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

2012-2013*

At current prices, the Net State Domestic Product (NSDP) of Nagaland was about US$ 2.3 billion in 2012-13*. Nagalands NSDP increased at a CAGR of 10.9** per cent between 2004-05 and 2012-13*.

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

CAGR 10.9%**
1.9 1.2 1.4 1.9 2.4 2.3 2.0 2.3

1.5

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

2012-2013*

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

The states per capita GSDP in 2012-13* was US$ 1,179.8 as compared to US$ 729.4 in 2004-05. Per capita GSDP increased at a CAGR of 8.7** per cent between 2004-05 and 2012-13*.

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

CAGR 8.7%**
822.0 729.4 1,073.1 871.1 1,272.0 1,270.4 1,081.2 1,149.3 1,179.8

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

2012-2013*

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

The states per capita NSDP in 2012-13* was US$ 1,096.1 as compared to US$ 677.2 in 2004-05. The per capita NSDP increased at a CAGR of 8.8** per cent between 2004-05 and 2012-13*.

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

CAGR 8.8%**
993.7 807.6 677.2 1,006.5 1,177.0 1,060.2

1,096.1 1,177.7

763.1

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

2012-2013*

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

The secondary sector has been the fastest-growing sector, expanding at a CAGR of 15.0* per cent from 2004-05 to 2012-13. It was driven by construction, manufacturing and electricity, gas & water supply. The tertiary sector expanded at a CAGR of 12.2* per cent from 2004-05 to 2012-13, driven by trade, real estate, banking, insurance, transport, communications and other services. 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 to the states GSDP at current prices. It was followed by the primary sector at 25.3 per cent and the secondary sector at 17.1 per cent.

GSDP composition by sector (2012-13)

CAGR*
52.3% 12.2% 57.6%

12.8%

15.0%

17.1% 25.3% 2012-13

34.9%

6.5%

2004-05 Primary sector Secondary sector

Tertiary sector

Source: CMIE *In Indian rupee terms

Agriculture contributes heavily to Nagalands economy. It contributed 19.8 per cent to the GSDP of Nagaland in 201213. Around 70.0 per cent of the population is engaged in the agriculture sector. Maize, sugarcane, paddy, banana, pineapple, ginger and potato are some of the key agricultural products of the state.

Crop
Banana
Pineapple Colocasia Ginger

Annual production^ 2012-13 (Tonnes)

80,000
85,000 48,490* 36,000 32,000

In 2011-12, the total food grain production in the state was 570,440 tonnes. Rice accounts for 75 per cent of the total food grain production and occupies around 70 per cent of the total cultivated land.
In 2011-12, the total oilseeds production in the state was 68,120 tonnes. Horticultural produce, agro-processing produce and bamboo have high export potential. Bamboo cultivation is now being commercialised. Nagaland Food Private Limited has been established in Dimapur Industrial Estate, which specialises in bamboo shoot processing, pineapple, passion fruit and orange juice processing.

Potato

Total cereals
Total fruits Total vegetables Total pulses

531,860*
271,935 205,740 36,460*

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

According to the Department of Industrial Policy & Promotion (DIPP), the cumulative FDI inflows from April 2000 to March 2013 amounted to US$ 78 million*. In 2012-13, total outstanding investments in the state were around US$ 6.4 billion. Investment in the services sector increased significantly, with its share in the total outstanding investments rising from 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 outstanding investments.

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

0.2% 6.4% 13.3% Services Electricity Manufacturing Mining 80.1%

Source: CMIE *FDI inflows for RBIs (Reserve Bank of Indias) Guwahati region, which includes Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura

As of March 2013, Nagaland had 494 km of national highways. The state had 763 km of state highways and 22,095 km of rural roads, as of March 2011. The state is well connected with Assam and Manipur through National Highway (NH)-61, NH-39, NH-36, NH-150 and NH-155. Agencies maintaining roads in the state include the Public Works Department (PWD) and Sewak (a Border Roads Organisation of the Government of India). Nagaland State Transport provides road transport across Nagaland, covering 112 routes and 21,300 km, daily. Under the Indian governments North-eastern Region Highway Development Program, 13 road improvement projects costing around US$ 35.3 million were in progress in the state as of December 2012. In May 2013, the Indian government approved the 4-laning of the Dimapur-Kohima section of NH-39. The project cost is estimated at US$ 200.7 million.

Road type
National highways State highways Rural roads Total road length

Road length (km) as of March 2011

494* 763 22,095 34,146

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

The railway station at Dimapur connects Nagaland to rest of the country via Assam. Around 88 km of the Dimapur-Kohima railway project is in the planning stage. The central government has envisaged completing this US$ 156.5 million project by 2015.

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

Airport, Dimapur

Railway station, Dimapur

As of May 2013, Nagaland had a total installed power generation capacity of 116.8 MW. It consisted of 86.16 MW under central utilities and 30.67 MW under state utilities. Of the total installed power generation capacity, 53.32 MW was contributed by hydropower, 34.84 MW was contributed by thermal power and renewable power accounted for 28.67 MW of capacity.
102.7

Installed power capacity (MW)

116.8 116.8

103.1

103.1

103.1

The per capita power consumption was 218.0 kWh in the state in 2009-10. As of March 2013, the state had achieved 70.1 per cent of village electrification.

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14*

Source: Central Electricity Authority *As of May 2013

As of December 2012, Nagaland has 64 telephone exchanges. The service is provided through the Northeast-II circle of Bharat Sanchar Nigam Limited (BSNL). As of December 2012, BSNL subscribers in the state totalled 322,038. Broadband service in the state is provided by Sify, BSNL, Reliance, Tata Indicom and Airtel. Department of Telecommunications is implementing a scheme for augmentation, creation and management of the intra-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

Telecom infrastructure (March 2013)

Wireless subscribers^ 8,960,542 189,884 322,038* 62* 14.99* 328**

Wire-line subscribers^
BSNL subscribers Telephone exchanges Teledensity of BSNL subscribers (per cent) Post offices

Major telecom operators in Nagaland

Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel Aircel Limited Vodafone Essar Reliance Communications Tata Teleservices Idea Cellular
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

Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), US$ 25.3 million has been allocated for roads/flyovers, parking lots and spaces and drainage/storm water drains development in Kohima. As of May 2013, 52 per cent 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 are underway. The North Eastern Region Urban Development Programme (NERUDP) Phase-I is being implemented by the Ministry of Urban Development (MoUD) with financial assistance from Asian Development Bank (ADB). It covers Kohima city in the state. 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 waste management, 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.

Nagaland has a literacy rate of 80.1 per cent according to the provisional data of Census 2011; the male literacy rate is 83.3 per cent and the female literacy rate is 76.7 per cent. The Nagaland University (NU) offers bachelors, masters and doctoral degrees in science, humanities & education, social science, engineering & technology and management.

Educational infrastructure (2011-12)

Universities
Colleges Theological colleges Industrial Training Institutes

3
56 24 8 2,350* 476*

Directorate of Technical Education was established in July 2009 to focus on technical education.
Major activities of the Department of Higher Education include awarding scholarships, construction of academic and other buildings, employing quality manpower and providing them regular training. Budget of the department for 2011-12 was US$ 13.85 million. In May 2013, the state government signed an MoU with Vision University, Republic of Korea, to upgrade the skills of the youth and create new opportunities through student exchange programs.

Primary schools Upper primary schools

Literacy rates (%)

Literacy rate Male literacy Female literacy 80.1

83.3
76.7

Source: Department of Higher Education Annual Administrative Report 2011-12, Government of Nagaland, Census 2011 (provisional data) University Grants Commission, District Information System for Education (DISE) Analytical Tables 2010-11, Planning Commission - Annual Report 2011-12, Government of India *As of 2010-11, MoU: Memorandum of Understanding

As of March 2012, the state had 11 district hospitals, 126 primary health centres, 396 sub-centres, 21 community health centres and 11 mobile medical units. As of August 2011, the state had 204 ayurvedic and homeopathic dispensaries and hospitals. Community participation in healthcare services has led to better maintenance and up-gradation of medical infrastructure in the state.

Health infrastructure (As of March 2012)

Sub-centres
Primary health centres Community health centres District hospitals Ayurvedic and Homeopathic dispensaries and hospitals Mobile medical units

396
126 21 11 204* 11

Health indicators (2011)

Birth rate* Death rate* Infant mortality rate** 16.1 3.3 21
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

Sources: Sample Registration System (SRS) Bulletin 2012 (www.censusindia.gov.in) *Per thousand persons **Per thousand live births

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

Nagaland Industrial Development Corporation (NIDC) is responsible for the development of industrial infrastructure in the state. Promoted by NIDC, the Export Promotion Industrial Park (EPIP) at Dimapur has received formal approval as a Special Economic Zone (SEZ) for agro and food processing. A proposed multi-product SEZ spread across 400 hectares in Dimapur has received formal approval. An industrial growth centre (IGC) has been developed in Ganeshnagar near Dimapur. It has supporting infrastructure such as water supply system, bank, post office, police station, etc.

Industrial infrastructure

Border Trading Centre with Myanmar Exhibition facilities for national and international fairs on handloom products Infrastructural development schemes for districts in the No Industry category

Urban haats have been established in Dimapur, which provide market outlets for various trades. A mini tool-room and training centre has been established at Dimapur. The state has established various MSME industrial clusters, mainly in Kohima, Wokha and Mokokchung districts. An integrated infrastructure development centre (IIDC) was inaugurated at Kiruphema in Kohima. The Longnak valley in the Mokochung district is being considered for a similar project. North Eastern Industrial Consultants Ltd (NECON) was established by financial institutions and banks to provide assistance and professional services to entrepreneurs in the state. NECON assists in preparation of project reports, feasibility reports and surveys.

Industrial infrastructure
District industries centre (DIC)
Sub-DICs International border trade centres SEZ (agro & food processing) Old industrial estate, Dimapur New industrial estate, Dimapur Mini industrial estates Growth centres Industrial zones

Units
11
6 5 1 1 1 2 6 12

Sources: National Skill Development Corporation SEZ: Special Economic Zone, MSME: Micro, Small and Medium Enterprises

The natural resources, climatic conditions and policy incentives in Nagaland support investments in industries related to bamboo, horticulture, sericulture, tourism and agro-processing. Other promising sectors in the state include paper and pulp processing, minerals and mining, and petrochemicals. The state adopted a cluster development approach, developing the cluster areas in proximity to the resources. Nagaland Industrial Development Corporation (NIDC) is responsible for the development of industrial infrastructure in the state. An export promotion industrial park is located in Dimapur and it provides industrial plots as well as ready to built standard design factories, a state of the art convention centre with hi-tech communication services and secretarial services, besides other facilities.

Key industries in Nagaland

Bamboo Agriculture and allied industries Horticulture Sericulture Minerals and mining Handloom and handicrafts Tourism

MSME clusters in Nagaland

Fabrication and general engineering

District
Kohima

Principal products

Total units
27

Grill, gate, shutter, welding Mokokchung Kohima Local loom, handloom Cloths, cot, shawl, mekila Honey products 25 50 20 45 25 15 25

Handloom cluster Longmisa, Mokokchung Bee-keeping Cane & bamboo cluster Pottery cluster Stone cluster Kohima Khar, Mokokchung Changki, Mokokchung Wokha

Cane chair, table, bamboo mat, basket, bag

Pot, vase, decorative design items Stone crushing, stone chips, boulder

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

Nagalands bamboo growing stock, covering 448,000 ha of land and comprising 22 species, is about 5.0 per cent of the total stock in the country. During the 11th Five-Year Plan period, the state harvested 4.5 million tonnes of bamboo under its mission mode programmes. Nagaland promotes bamboo processing as an enterprise, covering various applications such as food-based, medicinal usage, handicraft, art, tiles and flooring. Nagaland Bamboo Development Agency (NBDA) is the nodal office that coordinates with other offices for all bamboo-related research, development and business applications. NBDA set up Nagaland Bamboo Resource Centre (NBRC) at Dimapur as a centre of excellence with the following objectives: Function as information repository and facilitate technology and information transfer to enterprises. Create awareness on the 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 and application.

Nagaland has a rich wealth of flora and fauna. Favourable climatic and geographical conditions in the state offer tremendous scope for floriculture. Based on accessibility and agro-climatic conditions, Kohima, Mokokchung, Wokha and Dimapur districts have commercial potential for floriculture. 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 tallest Rhododendron tree in the world. The annual turnover of floriculture business in the state is estimated at around US$ 2 million.

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 and carnations, which are spread over an area of about 38 acres. The centre cultivates eight varieties of carnations, 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, grows around 40,000 anthurium plants of 11 varieties. Akruzo Putstire, Sovima, is the biggest anthurium grower in Nagaland.

Source: National Skill Development Corporation

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

Forest area occupies 52 per cent of the states total land area. Out of the total land area of 1.7 million hectares, 93,231.4 hectares 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 development during 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

Nagaland has immense potential to produce organic honey and pollen due to its rich biodiversity, traditional knowledge and practice 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 generate an 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, it has 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

It is estimated that Nagaland has a potential for 1,000 MW of hydropower generation, but the installed hydropower generation capacity 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 has prepared 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 Dikhu Hydropower 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 the Government 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

Salubrious climate, green hills, criss-crossing rivers, interspersed lakes, vibrant culture, colourful handicrafts and weavings, and numerous festivals make Nagaland a tourists paradise. About 27,500 domestic and foreign tourists visited the state during 2011. Creation of tourist complexes, eco-tourism, adventure tourism, ethnic culture tourism, health farms, hotels, convention centres, tourist travel services, etc., are various avenues for investment in the sector. Ministry of Tourism, Government of India has included 12 villages in Nagaland under the rural tourism scheme in order to 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)

27.5

22.4

22.2

2009

2010

2011

Source: Ministry of Tourism, Government of India

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 and favourable climate, Nagaland is well poised to serve the IT industry. In order to develop skilled manpower in IT, education and certifications from Department of Electronics Accreditation of Computer Courses (DOEACC) 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 and management of information technology in the state. The department is undertaking development, operation and maintenance of the Nagaland IT park project through public-private partnership (PPP).

The Department of Sericulture of Nagaland is mandated to popularise sericulture in rural areas, generate employment opportunities, introduce and impart latest technologies on sericulture, support marketing of sericulture products and promote exports of silk from Nagaland. To facilitate operations at the district-level, the department has set up district sericulture offices in all the 11 districts of the state. Agro-climatic conditions in the state are conducive for development of sericulture. Mulberry, muga, eri, oak-tussar, and silk are 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 to 1,700 MT over the 12th Five Year plan period. In 2011-12, total mulberry plantation area was around 495 hectares in the state.

The handicraft and handloom sector in Nagaland has enormous growth potential due to the abundant availability of skilled labour and raw materials, coupled with the rich cultural traditions the people. Handicraft and handloom products from the state 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 production and trade. Nagaland Handloom & Handicrafts Development Corporation Limited, was established in 1979. Its primary objectives are production development and promotion of handloom & handicrafts.

Coal, limestone, nickel, cobalt, chromium, magnetite, copper, zinc, petroleum and natural gas are the major minerals available in Nagaland. The state has reserves/resources of coal in Borjan, JhanziDisai, 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 and petrochemicals industries. Explorations are being carried out by Geology & Mining Department, Geological Survey of India, Oil and Natural Gas Corporation Limited (ONGC), Atomic Minerals Division and Central Ground Water Board.

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

Coal Cobalt ore

(Million tonnes)
315.4* 5

Chromite Copper ore

Iron ore Dunite Limestone Nickel ore

3.2 2.0
5.2 4.8 1,037.8 5

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

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 oil belts 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

Nagaland has rich flora and fauna, which support various medicinal plants. The agro-climatic conditions of Dimapur Mokokchung, Phek and Tuensang districts are suitable for growth and cultivation of medicinal and aromatic plants. The state has identified 650 indigenous medicinal plants that could be cultivated and processed, including aconitum ferox, lemon grass, aconitum heterophyllum, aquilaria agallocha, artemiszia annua, dioscorea floribunda, gloriosa superba, hedychium spicatum, lycopodium clavatum, nardostachys jatamansi, panax-pseudoginseng, picrorhiza kurron, piper longum, piper nigrum, podophyllum hexunddrum, pogostemon cablin, smilax china, tagetes minuta, taxuz bacata and valeriana wallichii. The Department of Land Resources Development has taken up the programme for the development of medicinal and aromatic plants through Bio-Resources Mission with a view to encourage farmers for the cultivation of indigenous medicinal and aromatic plants (MAP) on a commercial basis. To conserve and promote medicinal plants in the state, the government has set up herbal gardens at Dimapur, Wokha, Mon, Mokokchung and Kohima. During the 11th Five Year Plan period, 4,230 hectares of medicinal and aromatic plants were developed in the state.

Herbal garden at Dimapur, Nagaland

List of approvals and clearances required

Incorporation of company Registration, Industrial Entrepreneurs Memorandum, industrial licenses

Department
Registrar of Companies Industries & Commerce Department

Permission for land use Allotment of land Nagaland Industrial Development Corporation Limited Nagaland Pollution Control Board No-objection certificate and consent under Water and Pollution Control Act Registration under States Sales Tax Act and Central and State Excise Act

Site environmental approval

Excise Department
Commercial taxes Sanction of power Power feasibility Power connection Approval for construction activity and building plan Water and sewerage clearance Public Health and Engineering Department Water connection Public Works Department Department of Power

Agency

Contact information
258, 1st Floor, Vigyan Bhavan Annexe, New Delhi- 110011 Phone: 91-11-23022400/01 Fax: 91-11-2306 2754 Website: mdoner.gov.in Director of Industries & Commerce Upper Chandmari, Kohima-797001, Nagaland Phone: 91-370-228001 Fax: 91-370-221368 E-mail: doi@nagaind.com IDC House Dimapur - 797112, Nagaland Fax: 91-3862-26473 Email: nidc@nagaind.com Post Box No 31, Dimapur Nagaland Phone: 91-3862-224 591

Ministry for Development of North Eastern Region

Department of Industries & Commerce

Nagaland Industrial Development Corporation

Nagaland Handloom & Handicrafts Development Corporation

Cost parameter
Cost of land (per acre) Hotel costs (per room per night) Office space rent (2,000 sq ft) Residential space rent (2,000 sq ft house) Labour costs (minimum wages per day)

Cost estimate
US$ 50,000 to US$ 200,000 (in Kohima and Dimapur) US$ 15 to US$ 100 US$ 100 to US$ 800 per month US$ 75 to US$ 300 per month Unskilled: US$ 1.8 Skilled: US$ 2.2 to US$ 2.4

Source
Industry sources State Tourism website Industry sources Industry sources Ministry of Labour and Employment, Government of India

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

Objective

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

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Nagaland Bamboo Policy 2004 Objectives

To promote bamboo cultivation and bamboo-based industries in Nagaland. To promote ecological security and economic growth through development and utilisation of the bamboo resources in the state.

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IT Policy of Nagaland 2004 Objectives

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 in the state.

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Nagaland State Industrial Policy 2000

Objectives

To facilitate rapid and sustained industrial development of the state. To enable entrepreneurs to generate substantial income and employment for the people of Nagaland.

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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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